Toyota looking to setup third manufacturing plant in India

Kenneth John Published: September 29, 2023, 11:59 AM IST

Toyota Motor wants to establish a third automobile factory in India, increasing manufacturing capacity for the first time in more than a decade as its alliance with Suzuki Motor improves domestic sales as per sources.

According to one person with firsthand knowledge of the plans, the world's largest automaker wants the facility to start with a capacity of 80,000-120,000 vehicles per year, which might increase to about 200,000 over time.

The projected starting capacity of the factory will increase Toyota's existing manufacturing capacity in India by up to 30 percent from the present 400,000 vehicles. Toyota has also begun development of a new SUV for the Indian market, which will be released in early 2026 and serve as an anchor product for the new plant, according to the person and a third source briefed on the company's intentions.

Toyota's India sales have increased as a result of a global relationship with Suzuki in which the two Japanese automakers take cars manufactured by their partner, alter them, and sell them under their own names to round out their product lineup.

Maruti Suzuki vehicles, such as the Glanza hatchback and Urban Cruiser Hyryder SUV, currently account for 40 percent of Toyota's India sales.

Maruti Suzuki uses almost two-thirds of Toyota's present manufacturing capacity to create vehicles for both car companies as part of their cooperation. The Japanese automaker now plans to produce 500,000 vehicles per year by the end of the decade, including the models it will deliver to Suzuki.

Toyota's next C-segment SUV, codenamed 340D, will cover a gap between its mid-sized Urban Cruiser Hyryder and larger multi-purpose vehicle Innova Hycross, according to two sources. It is working with suppliers to produce 60,000 units a year when it launches in early 2026.

Source: Reuters

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