Japanese automaker Toyota Motor is preparing a significant expansion in India, with plans to set up three new vehicle assembly plants in Maharashtra, according to a report by Japan’s Nikkei newspaper.
The proposed investment is estimated at around 300 billion yen, or roughly $1.91 billion, and is expected to substantially increase the company’s manufacturing footprint in the country.
Production Capacity Set to Triple
With the addition of the new facilities, Toyota’s production capacity in India is projected to rise to one million vehicles annually by the 2030s. This marks a major scale-up for the company, which is increasingly focusing on emerging markets amid slowing demand in the United States and China.
India Becomes Key Global Manufacturing Base
Once the Maharashtra plants become operational, Toyota will operate six manufacturing facilities in India, compared to its current three plants located in southern India. These existing units mainly serve domestic demand.
The new plants are expected to cater to both the Indian market and export requirements, giving Toyota a more flexible and globally integrated production strategy.
According to data from Japanese research firm Fourin, Toyota currently has production capacities of 3.1 million units in Japan, 2.2 million in China, and 1.5 million in the United States. With the India expansion, the country is set to become Toyota’s fourth-largest production base worldwide.
Focus on Hybrid and Future Mobility
The expansion plan also includes the production of plug-in hybrid vehicles, aligning with rising demand for cleaner and more fuel-efficient mobility solutions in India and global markets.
While Toyota Motor has not officially commented on the report, the move reflects its broader strategy to diversify production and strengthen presence in high-growth markets.
India’s Growing Role in Global Auto Manufacturing
The announcement comes as India continues to position itself as a global automotive manufacturing hub. International carmakers are increasingly investing in the country, attracted by strong domestic demand, cost advantages, and improving infrastructure.
Toyota’s decision to expand in Maharashtra further reinforces the state’s status as a key automotive manufacturing centre, adding to its growing industrial ecosystem.
