Toyota Motor wants to establish a third vehicle manufacturing facility in India, expanding manufacturing capacity in the country for the first time in over a decade as its alliance with Suzuki Motor raises domestic sales, according to two sources.

According to an individual with firsthand knowledge of the plans, the world’s largest auto manufacturer wants the facility to start with a capacity of 80,000-120,000 vehicles per year, which might increase to about 200,000 over time.

The projected starting capacity of the plant will increase Toyota’s existing manufacturing capacity in India by up to 30% from 400,000 units currently.

Toyota has also initiated the development of a new sport utility vehicle (SUV) for the Indian market, which would be delivered in early 2026 and serve as an anchor product for the new plant, according to the person and a third source briefed on the company’s intentions.

The sources did not want to be named since the company has not publicized its growth intentions.

Toyota’s India unit refused to comment.


Toyota’s India sales have increased as a result of a global relationship with Suzuki in which the two Japanese automakers take cars manufactured by their partner, alter them, and sell them under their own names to round out their product lineup.

40% of Toyota’s sales in India are now made up of vehicles that were once part of Maruti Suzuki’s lineup, such as the Glanza hatchback and Urban Cruiser Hyryder SUV.

Maruti Suzuki uses almost two-thirds of Toyota’s present manufacturing capacity for producing vehicles for both auto companies as part of their cooperation.

Toyota, best known in India for its Fortuner SUV and Camry hybrid, told Reuters earlier this month that it expected record domestic sales in 2023.

According to two insiders, the Japanese automaker is now aiming for a manufacturing capacity of 500,000 vehicles per year by the end of the decade, including the car types it will deliver to Suzuki.

India’s expansion

Toyota’s expansion into India, the world’s third-largest vehicle market, comes at a time when it is experiencing slower growth in countries such as Europe and North America, as well as competition from Chinese competitors in Southeast Asia.

It now operates two automobile facilities in Bidadi, a town in the southern Indian state of Karnataka, with a third planned for the same location. In May, it added a third shift to the two factories, increasing their total yearly capacity by 30% to more than 400,000 cars.

Toyota’s next C-segment SUV, codenamed 340D, will cover a gap between its mid-sized Urban Cruiser Hyryder and larger multi-purpose vehicle Innova Hycross, according to two sources.

They stated that they are working with vendors to create 60,000 units per year when it opens in early 2026.

They said that Toyota is considering launching a “mini” Land Cruiser in India but emphasized that the automaker is still considering its options and has not made a final decision. They claimed that if Toyota did decide to move through with the vehicle, parts would be imported for assembly in India.

(Source: Reuters)

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