Toyota plans three new plants in India to triple capacity to 1 million units: Report

Japanese auto major Toyota Motor is planning a major manufacturing push in India, with three new vehicle assembly plants aimed at tripling its production capacity to 1 million units by the 2030s, the Nikkei reported on Friday.

The proposed facilities, to be built in Maharashtra, mark a strategic shift as global carmakers increasingly pivot towards high-growth markets like India, even as demand plateaus in mature economies such as the United States and China, the report said, adding that the total investment is estimated at around 300 billion yen (about $1.9 billion).

According to the report, the first plant is expected to go on stream around 2029, while the remaining two are likely to be commissioned in the early 2030s. Once operational, the new units will take Toyota’s total manufacturing footprint in India to six plants, alongside its existing facilities in the southern region.

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Export-led strategy takes shape

Unlike Toyota’s current India operations, which are largely focused on domestic demand, the new plants are expected to double as export hubs. Vehicles manufactured at these facilities will cater not just to India but also to markets across West Asia and Africa — regions seen as key growth drivers over the coming decades.

Maharashtra’s proximity to major ports, including Mumbai, is expected to play a crucial role in enabling efficient export logistics.

India to emerge as key production base

The expansion would position India as Toyota’s fourth-largest manufacturing base globally, behind Japan, China and the United States, according to data from research firm Fourin.

India is already the world’s third-largest automobile market and continues to offer strong growth visibility. Industry estimates suggest annual vehicle sales could reach 6.44 million units by 2030, supported by rising incomes and expanding middle-class demand.

At the same time, automakers are increasingly using India as a springboard to access other emerging markets. Africa and West Asia, in particular, are expected to see sustained demand growth driven by demographic expansion and urbanisation.

SUVs and hybrids in focus

As part of its product strategy, Toyota is expected to introduce a new three-row SUV under the Corolla brand, targeting a segment that has seen strong traction in India and similar markets, the report said.

The company is also likely to expand its plug-in hybrid portfolio, reflecting a calibrated approach to electrification in developing economies where charging infrastructure remains uneven.

Toyota’s expansion comes amid intensifying competition in India’s passenger vehicle market. Suzuki Motor, through Maruti Suzuki, continues to dominate the segment, while Hyundai Motor Company has been scaling up its presence, particularly in SUVs.

Toyota has also strengthened its alliance with Suzuki, sourcing select models produced in India, including electric vehicles.