Toyota Motor Corporation is gearing up to build a third car manufacturing facility in India, marking its first expansion in production capacity in the country in over a decade. This move comes as a result of Toyota’s partnership with Suzuki Motor Corporation, which has significantly increased domestic sales volumes for both Japanese automakers. Here are the key details:
Plant Capacity: According to sources with direct knowledge of Toyota’s plans, the new plant is expected to have an initial production capacity of 80,000-120,000 vehicles per year, with the potential to expand to approximately 200,000 units over time. This proposed capacity expansion would increase Toyota’s existing manufacturing capacity in India by as much as 30%, as the company currently produces around 400,000 units annually in the country.
New SUV Development: Toyota has initiated the development of a new sport utility vehicle (SUV) specifically designed for the Indian market. This SUV is scheduled for launch in early 2026 and is expected to serve as a flagship product for the new factory.
Maruti Suzuki Collaboration: Toyota’s India sales have surged due to its global partnership with Maruti Suzuki, a leading automaker in India. Under this partnership, both companies take certain vehicles originally developed by their partner, make modifications, and sell them under their respective brands to fill gaps in their product portfolios. This collaboration has been particularly successful, with cars like the Glanza hatchback and Urban Cruiser Hyryder SUV, originally from Maruti Suzuki, now accounting for 40% of Toyota’s India sales.
Production Capacity Target: Toyota’s expansion in India is part of the company’s broader strategy to increase its production capacity to 500,000 vehicles per year by the end of the decade, including the models it will supply to Suzuki as part of their partnership.
New C-Segment SUV: Toyota is currently working on the development of a new C-segment SUV, codenamed 340D. This SUV will bridge the gap between its mid-sized Urban Cruiser Hyryder and the larger Innova Hycross multi-purpose vehicle. It is expected to launch in early 2026 with an annual production target of 60,000 units.
Mini Land Cruiser: Toyota is also exploring the possibility of introducing a “mini” Land Cruiser in India. However, the automaker has not made a final decision on this model, and it is not forecasting significant sales. If Toyota proceeds with the project, it would involve importing parts for assembly in India.
Toyota’s decision to build a third car plant in India underscores the company’s commitment to expanding its presence in one of the world’s largest automotive markets. The successful partnership with Maruti Suzuki and the development of new models, including an India-specific SUV, are key elements of Toyota’s growth strategy in the country.