My India First

My India First

Toyota India plant: Toyota plans third India plant, new SUV as home gross sales surge

Toyota Motor plans to construct a 3rd automobile plant in India, increasing manufacturing capability within the nation for the primary time in over a decade as its partnership with Suzuki Motor boosts home volumes, two sources mentioned.

The world’s greatest automobile maker needs the plant to start out with capability of 80,000-120,000 automobiles a yr, which might develop to round 200,000 over time, mentioned one of many individuals who has direct data of the plans.

The plant’s proposed preliminary capability would develop Toyota’s current manufacturing capability in India by as a lot as 30% from 400,000 items presently.

Toyota has additionally begun growth of a brand new sport utility automobile (SUV) for the Indian market that may be launched in early 2026 and be an anchor product for the brand new manufacturing unit, mentioned the particular person and a 3rd supply briefed on the corporate’s plans.

The sources declined to be recognized because the automaker has not disclosed the enlargement plans.

A consultant for Toyota’s India unit declined to remark. Toyota’s India gross sales have soared on account of a worldwide partnership with Suzuki below which the 2 Japanese automobile makers take some automobiles initially developed by their associate, then tweak and promote below their very own manufacturers to fill out their product line-up. Vehicles initially from Maruti Suzuki’s secure such because the Glanza hatchback and City Cruiser Hyryder SUV now account for 40% of Toyota’s India gross sales.

About two-thirds of Toyota’s present manufacturing capability is utilized by Maruti Suzuki to construct automobiles for each automobile makers as a part of their partnership.

Toyota, identified for its Fortuner SUV and Camry hybrid in India, informed Reuters earlier in September it expects report home gross sales in 2023.

The Japanese automobile maker is now aiming to have manufacturing capability of 500,000 automobiles per yr earlier than the top of the last decade, together with the automobile fashions it is going to provide to Suzuki, mentioned two of the sources.

INDIA GROWTH

Toyota’s enlargement in India, the world’s third-largest automobile market, comes at a time when it’s seeing slowing development in markets like Europe and North America and competitors in Southeast Asia from Chinese language gamers.

It presently has two automobile vegetation in Bidadi, a city within the southern Indian state of Karnataka, and the third one is being deliberate on the similar premises. It added a 3rd shift on the two vegetation in Could, elevating their mixed annual capability by 30% to over 400,000 automobiles.

The brand new C-segment SUV, codenamed 340D, that Toyota is engaged on will fill a spot between its mid-sized City Cruiser Hyryder and larger multi-purpose automobile Innova Hycross, two of the sources mentioned.

It’s working with suppliers to supply 60,000 items a yr when it launches in early 2026, they added.

Toyota can be taking a look at introducing a “mini” Land Cruiser in India, they mentioned, although added the automobile maker will not be forecasting a considerable amount of gross sales and has but to make a remaining resolution. If Toyota does determine to press forward with the mannequin, components could be imported for meeting in India, they mentioned.

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