Toyota to open third India factory in Maharashtra, production to start in 2029

Japanese automaker Toyota Motor Corporation on Monday announced plans to build a new vehicle manufacturing plant in Maharashtra as it steps up its India expansion strategy amid rising demand for sport utility vehicles and growing export opportunities from the country.

The new factory, to be located in the Bidkin Industrial Area in Maharashtra, will have an annual production capacity of 100,000 vehicles and is scheduled to begin operations in the first half of 2029, the company said in a statement.

The plant will manufacture a new SUV model and employ around 2,800 people when production begins. The facility will include stamping, welding, painting and assembly operations, marking Toyota’s latest long-term investment push in India.

The announcement comes as Toyota seeks to strengthen its production footprint in one of the world’s fastest-growing automobile markets while also positioning India as a manufacturing and export hub for surrounding regions in Asia and West Asia.

More from Business

Toyota did not disclose the investment amount planned for the Maharashtra facility. The company also withheld details of the new SUV that will roll out from the plant.

In a statement, Toyota said the upcoming facility would help the company respond more flexibly to future demand growth and changing market conditions in India and nearby markets.

“Toyota’s business in India has progressed together with those who pioneered the Indian market, with Toyota receiving invaluable learning and support from those pioneers,” the automaker said.

The company said the new plant would support the development of India’s automotive industry and contribute to local communities through job creation and industrial growth.

The announcement also comes weeks after a report by Nikkei said Toyota Motor was planning a broader manufacturing expansion in India involving three new plants in Maharashtra aimed at tripling its production capacity in the country to 1 million units annually by the 2030s.

According to the report, Toyota could invest around 300 billion yen (about $1.9 billion) in the India expansion plan, with the first facility expected to begin operations around 2029 and the remaining two plants likely to come online in the early 2030s.

The report said the upcoming Maharashtra facilities would not only cater to domestic demand but also serve as export hubs for markets across West Asia and Africa, regions where vehicle demand is expected to grow steadily over the coming decades. Maharashtra’s proximity to ports, including Mumbai, is also seen as a strategic advantage for export logistics.

If the expansion materialises as planned, India would emerge as Toyota’s fourth-largest manufacturing base globally after Japan, China and the United States, reflecting the country’s growing importance in the automaker’s long-term global strategy.

Toyota’s India operations are run through Toyota Kirloskar Motor, a joint venture between Toyota Motor Corporation and Kirloskar Systems Limited. Toyota holds an 89 per cent stake in the venture, while Kirloskar Systems owns the remaining 11 per cent.

The company currently operates two manufacturing plants in Bidadi, Karnataka, with a combined installed production capacity of up to 342,000 vehicles annually.

Toyota’s first Bidadi facility, established in 1997 with production beginning in 1999, manufactures models including the Innova HyCross, Innova Crysta, Fortuner and Legender. Its second plant, operational since 2010, produces the Camry Hybrid, Urban Cruiser Hyryder and Hilux.

The company also sells models such as the Glanza, Rumion and Urban Cruiser Taisor in the Indian market, while premium vehicles including the Vellfire and LC 300 are imported as completely built units.

India has emerged as a key growth market for global automakers as rising incomes and improving infrastructure continue to drive SUV demand. Major manufacturers including Suzuki Motor Corporation, Hyundai Motor Company and Tata Motors have also announced capacity expansion plans in recent years to tap into the country’s growing passenger vehicle market.