The local unit of Toyota Motor is planning to expand marketing focus on rural India to shore-up sales of its sluggish compact models, following the successful strategy of rivals Maruti Suzuki and Hyundai Motor which sell a sizeable number of their small cars in the hinterlands.

The Japanese car-maker, which is present in the country through a joint-venture with Bangalore-based Kirloskar Group, is putting up a rural sales division to reinforce its marketing plan for the Indian automotive market that is gradually showing signs of improvement after shrinking for two consecutive years.

"India is a vast market and to capitalise on the extensive model offerings, we have embarked on a new strategy to go rural," Toyota Kirloskar Motors managing director Naomi Ishii said. "We have chosen our compact model Liva that is an ideal product with a right price and packaging for the Indian rural customers' looking for high-value preposition."

According to him, just a "miniscule" percentage of its volume now comes from rural markets "which we want to take to double digits in next few years, at par with other car-makers".

Toyota has enrolled its dealers to kick-off village road-shows, with emphasis on the car-maker's vehicle quality and service.

The company that has more than 250 dealerships across India has plans to start more rural outlets in coming months.

"Toyota Kirloskar Motor is a serious player and is pursuing different strategies to grab its share," said a top automotive analyst, preferring not to be named as Toyota is a global client for his company.

Toyota estimates the Indian passenger vehicle market to double to around five million units by 2020 and a significant amount of the demand to come from towns and rural markets.

It is aggressively expanding its dealership footprint in rural India where its dealers will be tapping local opinion-makers like panchayat functionaries, to expand the brand's reach.