New Delhi, Jan. 1 -- India's largest carmaker, Maruti Suzuki India Ltd, is prioritizing the production of small cars like the Alto and Spresso, even if it means cutting output of bigger models, as it believes there is still growth potential for them in the world's third-largest automobile market.

The New Delhi-based carmaker said on Thursday that mini cars like the Alto and Spresso are showing strong growth, with sales nearly doubling in December. The company is ramping up production of these vehicles to meet retail bookings, buoyed by recent goods and services tax (GST) cuts.

Dispatches of mini cars to dealers in December increased by 92% year-on-year to 14,225, lifting Maruti's total domestic sales by 36% to 192,115 units in the month...