Toyota to build 4th plant in India for robust middle class
Toyota Motor Corp. will construct its fourth plant in India as the company accelerates its investment in the world's third-largest automobile market where a rapidly growing middle class is spurring vehicle sales.
According to sources, the new plant is planned for the western state of Maharashtra. Its initial production capacity is expected to be around 100,000 vehicles annually, with plans to scale up over time.
Toyota signed a memorandum with the state government last year and is currently finalizing details that include the construction timeline and the vehicle models it plans to manufacture.
This new facility will follow Toyota's ongoing construction of a third plant near Bengaluru in the southern state of Karnataka, which is set to begin operations in 2026.
The company is investing 33 billion rupees (56 billion yen, or $376 million) in its third facility. Once operational, Toyota's three existing plants in India should have a combined production capacity exceeding 400,000 units annually.
Now the world's most populous country, India is experiencing robust economic growth and the rise of a thriving middle class is fueling demand for passenger vehicles.
In response, Toyota has partnered with Indian market leader Suzuki Motor Corp. to increase its lineup of popular SUVs and hybrid models.
The company has also decided to market Suzuki electric vehicles manufactured in India under the Toyota brand.
Data from automotive research firm Marklines Co. shows that India's new vehicle sales reached 5.23 million units in 2024, including 4.27 million passenger vehicles. Toyota saw its own vehicle sales in the country jump 35.2 percent from 2023 to 300,000 units last year.
Suzuki led the market with a 41.1 percent share, followed by Hyundai Motor Co. with 14.2 percent, Tata Motors with 13.5 percent and Toyota ranked fifth with a 7 percent share.
A Toyota official said that India is not only a key growth market but also a potential export hub to Africa and other regions.
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