Toyota Planning to Build Third Car Plant in India

According to the latest Reuters report, Toyota aims to establish a third car plant in India, increasing manufacturing capacity in the nation for the first time in over a decade as its collaboration with Suzuki boosts domestic volumes.

Toyota wants the facility to begin with a capacity of 80,000–120,000 vehicles annually, which might increase to about 200,000 over time, the report said. The plant’s proposed initial capacity will increase Toyota’s current manufacturing capacity in India from 400,000 units at present by up to 30%.

According to a source familiar with the company’s plans who wish to remain anonymous, Toyota has also started developing a new sport utility vehicle (SUV) for the Indian market that will be unveiled in early 2026 and serve as an anchor product for the new factory.

Toyota’s India sales have increased as a result of a global collaboration with Suzuki in which the two Japanese automakers take vehicles manufactured by their partner, cosmetically tweak them, and sell them under their own names to round out their product lineup. Maruti Suzuki vehicles, such as the Glanza hatchback and Urban Cruiser Hyryder SUV, currently account for 40% of Toyota’s India sales.

Maruti Suzuki uses almost two-thirds of Toyota’s present production capacity to create vehicles for both car makers as part of their partnership. Toyota, known in India for its Fortuner SUV and Camry hybrid, expects record domestic sales in 2023. The Japanese automaker now plans to produce 500,000 vehicles per year by the end of the decade, including the models it will deliver to Suzuki.