Toyota Motor is planning to build a third car plant in India, aiming to expand production capacity in the country for the first time in over a decade. The move comes as Toyota’s partnership with Suzuki Motor boosts domestic volumes. The plant is expected to have an initial capacity of 80,000-120,000 vehicles per year, which could potentially increase to around 200,000 over time. This would expand Toyota’s existing manufacturing capacity in India by up to 30% from its current 400,000 units. Additionally, Toyota is developing a new sport utility vehicle (SUV) specifically for the Indian market, which will serve as an anchor product for the new factory.
Toyota’s India sales have experienced significant growth thanks to its partnership with Suzuki. Vehicles originally developed by Maruti Suzuki, such as the Glanza hatchback and Urban Cruiser Hyryder SUV, now make up 40% of Toyota’s India sales. The expansion plans align with Toyota’s goal of achieving record domestic sales in India by 2023. Furthermore, Toyota aims to have a production capacity of 500,000 vehicles per year in India by the end of the decade, including models supplied to Suzuki. This expansion in India comes as Toyota faces slower growth in other markets, such as Europe and North America, and competition from Chinese players in Southeast Asia.
In terms of specifics, the new plant is being planned at Toyota’s existing premises in Bidadi, Karnataka, where it currently has two car plants. The company added a third shift at these plants in May, increasing their combined annual capacity by 30% to over 400,000 vehicles. The new C-segment SUV, codenamed 340D, that Toyota is working on will bridge the gap between its mid-sized Urban Cruiser Hyryder and larger multi-purpose vehicle Innova Hycross. It is projected that the SUV will have an initial production volume of 60,000 units per year upon its launch in early 2026. Additionally, Toyota is considering introducing a “mini” Land Cruiser model in India, but a final decision has not yet been made. If the model goes forward, parts would be imported for assembly in India.