Toyota plans third India plant, new SUV as domestic sales surge
Toyota Motor is reportedly planning to build a third car manufacturing plant in India, marking a significant expansion of its production capacity in the country. This expansion comes as a result of Toyota’s partnership with Suzuki Motor, which has contributed to increased domestic volumes.
The new plant is expected to have an initial capacity of 80,000 to 120,000 vehicles per year, with the potential to grow to around 200,000 vehicles over time. This expansion would increase Toyota’s existing manufacturing capacity in India by as much as 30%, from the current 400,000 units.
Additionally, Toyota is said to be developing a new sport utility vehicle (SUV) specifically for the Indian market. This SUV is anticipated to be launched in early 2026 and will serve as a flagship product for the new manufacturing facility.
Toyota’s India unit declined to comment on recent developments. Toyota’s sales in India have seen a substantial boost, thanks to their global partnership with Suzuki. Under this collaboration, both Japanese automakers share and modify vehicles originally developed by the other to sell under their own brands, thereby expanding their product offerings.
Notably, vehicles like the Glanza hatchback and Urban Cruiser Hyryder SUV, which originate from Maruti Suzuki, now constitute a significant 40% of Toyota’s total sales in India. Furthermore, a majority of Toyota’s current production capacity in India is dedicated to Maruti Suzuki, serving both companies’ production needs. Toyota, known for its Fortuner SUV and Camry hybrid in the Indian market, has also expressed its expectations for record domestic sales in 2023.
Looking ahead, Toyota aims to increase its production capacity in India to 500,000 vehicles per year before the end of the decade, including the vehicles it supplies to Suzuki, according to insider sources. Please note that this information is based on the situation as of my last update in September 2021, and developments may have occurred since then.
Toyota’s expansion efforts in India, which is the world’s third-largest car market, are significant given the challenges it faces in other regions. While growth has been slowing in markets like Europe and North America, and competition from Chinese automakers is fierce in Southeast Asia, Toyota is strategically focusing on India.
Currently operating two car manufacturing plants in Bidadi, located in the southern Indian state of Karnataka, the company is planning to set up a third plant on the same premises. This expansion is a testament to Toyota’s commitment to the Indian market.
To further boost production capacity, Toyota implemented a third shift at the existing two plants in May. This move increased their combined annual production capacity by a notable 30%, allowing them to manufacture over 400,000 vehicles annually. These efforts reflect Toyota’s determination to strengthen its presence and market share in India’s burgeoning automotive industry.
Toyota’s upcoming C-segment SUV, internally referred to as codename 340D, is set to address a market gap between its mid-sized Urban Cruiser Hyryder and the larger multi-purpose vehicle Innova Hycross, according to insider sources. The company is actively collaborating with suppliers to prepare for the launch of this SUV, with plans to produce approximately 60,000 units annually starting from early 2026.
Additionally, Toyota is exploring the possibility of introducing a “mini” Land Cruiser in the Indian market. However, it’s worth noting that the automaker is not anticipating a significant volume of sales for this model and has not yet made a final decision regarding its production. If Toyota does decide to proceed with the mini Land Cruiser, it is likely that certain parts would be imported for assembly in India.
These developments showcase Toyota’s strategic efforts to diversify its product lineup in India and cater to a wider range of consumer preferences, aligning with its ambitions for growth and expansion in the Indian automotive sector.
