Toyota Motor is planning to build a third car manufacturing plant in India, marking its first capacity expansion in the country in over a decade. This move is driven by its partnership with Suzuki Motor, which has boosted domestic volumes. The proposed plant is expected to have an initial capacity of 80,000-120,000 vehicles annually, with the potential to expand to around 200,000 over time. This expansion would increase Toyota’s existing manufacturing capacity in India by up to 30%, from its current 400,000 units.
Additionally, Toyota is in the process of developing a new sport utility vehicle (SUV) specifically for the Indian market, set to be launched in early 2026. This SUV will serve as a cornerstone product for the new factory. Toyota’s sales in India have seen significant growth thanks to its partnership with Suzuki, with vehicles originally developed by Maruti Suzuki accounting for 40% of Toyota’s India sales. The company is now aiming to achieve a production capacity of 500,000 vehicles per year in India by the end of the decade, including models supplied to Suzuki as part of their collaboration.
While Toyota is expanding its presence in India, it is also dealing with slowing growth in other markets like Europe and North America, as well as increasing competition from Chinese automakers in Southeast Asia. The new manufacturing plant and SUV development demonstrate Toyota’s commitment to the Indian market, which is the world’s third-largest car market.
This expansion is part of Toyota’s broader strategy to strengthen its position in key global markets and cater to the growing demand for its vehicles.