Toyota to Build Three New Vehicle Plants in India, Targeting 1M Annual Output

Toyota plans to build three new vehicle assembly plants in western Maharashtra, India. The first plant is expected to begin production in 2029, with the remaining two coming online successively after 2030. The total investment for the project amounts to approximately ¥300 billion (about $1.9 billion). Once completed, Toyota’s total number of vehicle plants in India will rise to six, boosting its annual production capacity in the country to one million units—triple its current capacity. The new facilities will serve both the domestic Indian market and export markets, with vehicles destined for the Middle East and Africa. Maharashtra’s proximity to Mumbai Port offers strategic logistical advantages for expanding into these overseas regions. Toyota also plans to launch a new three-row SUV in India based on the Corolla platform and introduce plug-in hybrid variants to meet growing environmental demands. Currently, Toyota operates three plants in southern India, primarily catering to the local market. With the new factories coming online, India will become Toyota’s fourth-largest global production base, trailing only Japan (3.1 million units), China (2.2 million units), and the United States (1.5 million units). India is currently the world’s third-largest new vehicle market. Sales are projected to reach 6.44 million units by 2030, a 20% increase from 2025 levels. Over the same period, markets in Africa and the Middle East are also expected to expand significantly. By 2050, new vehicle sales in Africa alone are forecast to surpass 6 million units, while populations in Africa and the Middle East are expected to grow to 2.5 billion and 700 million respectively, with India’s population exceeding 1.7 billion. Other automakers are also accelerating their investments in India. Suzuki entered the Indian market in 1982, and its subsidiary Maruti Suzuki now holds a 40% share of the country’s passenger vehicle market. Maruti Suzuki has already commissioned a new plant and plans to build another by 2029. Suzuki also supplies Toyota with certain models produced locally in India, including the Urban Cruiser EV. Meanwhile, Hyundai Motor acquired General Motors’ former Indian plant in 2023 to expand its SUV production capacity and now commands over 10% of India’s passenger vehicle market.