Toyota Motors Plans Third Plant in India as Domestic Demand Rises

20 October 2023: Toyota Motor is planning to build a third car plant in India as Domestic Demand Rises. Toyota’s New Plant will start with a capacity of 80,000-120,000 vehicles a year, which could grow to around 200,000 over time, report says. Third plant’s proposed initial capacity would expand Toyota’s existing manufacturing capacity in India by 30% from 400,000 units currently.

Toyota has also begun the development of a new sports utility vehicle (SUV) for the Indian market that would be launched in early 2026 and be an anchor product for the new factory, report said.

Toyota’s expansion in India, the world’s third-largest car market, comes at a time it is seeing slowing growth in markets such as Europe and North America and competition in Southeast Asia from Chinese players. It has two car plants in Bidadi (Karnataka) and the third one is being planned at same premises.

Toyota’s India sales have also grown due to a global partnership with Suzuki under which the two Japanese car makers take some vehicles originally developed by their partner, then tweak and sell under their own brands. Japanese car maker is now aiming to have production capacity of 500,000 vehicles per year before the end of the decade, including the car models it will supply to Suzuki, said the sources.