Car makers are increasing focusing on rural markets as major companies report 50-100 per cent rise in sales in such regions in the current fiscal.

Maruti Suzuki, which has the biggest market share, reported its sales for the first nine months of the current financial year more than doubled to 1.16 lakh cars. Other auto majors Hyundai, GM and Mahindra & Mahindra also recorded higher sales.

Maruti's rural sales accounted for 16 per cent up from 9 per cent last year of the total sales. While that for Hyundai grew to 29 per cent from 23 per cent in largely rural and semi-urban markets.

Maruti and Hyundai together hold about 70 per cent of the Indian car market. Maruti classifies its markets into top-80 cities and the rest as rural areas. The company has used platforms such as schools, panchayats and local clubs for promotions.

Maruti's new multi purpose vehicle Eeco is expected to get a good response from the segment. A Maruti official said that the company is growing faster than the industry as a whole the share of rural market is increasing in its total sales.

Rising incomes in the rural areas have resulted in growing demands and pushed up sales. Analysts believe that the Indian rural market has a prosperous segment and that it is largely under- penetrated.

Along with Maruti and Hyundai, other auto makers like General Motor India and Mahindra & Mahindra also see a huge potential in the market and increasingly focusing on the segment.

In other development, the auto makers hinted that the hiring in the industry will increase this year as the companies are planning to strengthen their workforce. All four Maruti Suzuki, Hyundai Motor, Mahindra & Mahindra and General Motors have said that they are planning to recruit more workers this year.

Increase in demands and cheap car loans have pushed up sales and companies are planning expansion including that in R&D operations. Society of Indian Automobile Manufacturers have said on Friday that "the automobile industry will hire about 5 million employees between now and 2012" in the country.

Many factors like rural prosperity and improved infrastructure have resulted in the growth of the auto industry. The industry provides employment to 13 million currently and by 2016 the industry aims at employing 25 million people, according to a SIAM estimate.