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WagonR is the company's third model to achieve the feat after Maruti 800 and Alto.
Launched in 1999, WagonR continues to feature among the top five best-selling cars in the country for over the last 10 years.
The model had crossed its first million sales in 2011, nearly 133 months after its launch. However, it managed to scale the next million in just 79 months.
"Since its inception, WagonR has been ahead of its peers. Its comfort seating, spacious interiors, superior fuel efficiency, practicality and pleasure of driving have made it a popular choice," said R S Kalsi, MSI Senior Executive Director Marketing and Sales, in a statement.
To keep it strong, the company has systematically upgraded the brand with new design and features over the years, he added.
"Needless to say, WagonR has continued to top the sales chart. Despite intensified competition in the small car space, WagonR continues to be the preferred choice of the practical car buyers," Kalsi added.