Toyota expanding in India with proposed plans for third plant

In an exclusive report, Reuters has revealed that Toyota Motor Corp plans to build a third car plant in India, expanding production capacity in the country for the first time in over a decade as its partnership with Suzuki Motor Corp boosts domestic volumes.

Akshar patel IV3j Gu VP718 unsplash1

The world's biggest car maker wants the plant to start with a capacity of 80 000-120 000 vehicles a year, which could grow to around 200 000 over time, said one of the people who has direct knowledge of the plans.

The plant's proposed initial capacity will expand Toyota's existing manufacturing capacity in India by as much as 30% from 400 000 units currently.

Toyota has also begun the development of a new sport utility vehicle (SUV) for the Indian market that will be launched in early 2026 and be an anchor product for the new factory, said the person and a third source briefed on the company's plans.

The sources for the exclusive report declined to be identified as the automaker has not disclosed the expansion plans.

A representative for Toyota's India unit declined to comment.

Toyota's India sales have soared owing to a global partnership with Suzuki under which the two Japanese car makers take some vehicles originally developed by their partner and then tweak and sell them under their own brands to complete their product line-up.

Cars originally from Maruti Suzuki's stable such as the Glanza hatchback and Urban Cruiser Hyryder SUV now account for 40% of Toyota's India sales.

About two-thirds of Toyota's current production capacity is used by Maruti Suzuki to build vehicles for both car makers as part of their partnership.

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

The Japanese car maker is now aiming to have production capacity of 500 000 vehicles a year before the end of the decade, including the car models that it will supply to Suzuki, said two of the sources.

More Industry News stories

Car buyers in South Africa spoilt for choice

Car buyers in South Africa spoilt for choice

Compared to global standards, the trading environment in South Africa remained extremely competitive, and in 2024, there were no fewer than 50 passenger car brands and 2 203 model derivatives, the greatest selection of market-size ratio found globally.

  • 16 May 2025
Motor show for petrolheads planned in KZN

Motor show for petrolheads planned in KZN

The Gas Motor show is preparing to take over Suncoast, Durban, on 14-15 June, promising an adrenaline-filled weekend packed with Africa’s rarest and most exciting vehicles, world-class entertainment and stunt performances.

  • 16 May 2025