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Toyota secures location for third manufacturing plant in India
Autocar Professional, 12 May '26Headlines 12 May '26
Following earlier media reports regarding Toyota Motor Corporation's plans to expand its manufacturing footprint in India and increase production capacity to 1 million units by the 2030s, Toyota Kirloskar Motor announced on May 11th, 2026 that it will construct a new vehicle manufacturing plant in the Bidkin Industrial Area of Maharashtra, India.
The facility is scheduled to begin production in the first half of 2029, with an initial production capacity of 100,000 vehicles per year.
The announcement aligns with previously reported plans for new manufacturing facilities in Maharashtra that are expected to support domestic sales and exports to surrounding regions, including West Asia and Africa. The new plant is expected to employ approximately 2,800 workers at the start of operations and will cover core automotive manufacturing processes, including stamping, welding, painting and assembly. The first model designated for production is a new SUV, although further specifications have not been disclosed. In addition to serving domestic demand, the facility is also expected to supply vehicles to markets surrounding India, indicating an export role from the outset.
Toyota Kirloskar Motor is a joint venture between Toyota Motor, which holds an 89% stake, and Kirloskar Systems Limited, which holds the remaining 11%. The partnership has operated in India for nearly three decades. The company stated that its development in the market has taken place alongside contributors to India's automotive industry, from whom it received initial support and operational guidance.
The company currently operates two manufacturing plants, both located in Bidadi, Karnataka. The first plant was established in October 1997 and commenced production in December 1999. It manufactures several Toyota models in India, including the Innova HyCross, Innova Crysta, Fortuner and Legender, with an installed production capacity of up to 132,000 units per year. The second plant, which commenced production in December 2010 at the same Bidadi site, manufactures the Camry Hybrid, Urban Cruiser Hyryder and Hilux, with a production capacity of up to 210,000 units annually. Together, the facilities have a combined installed production capacity of up to 342,000 units per year and employ 6,466 permanent staff across a total land area of approximately 432 acres.
In addition to its locally manufactured portfolio, the company also sells models sourced through other arrangements. The Glanza, Rumion and Urban Cruiser Taisor are among the Toyota models available in the Indian market, while the Vellfire and Land Cruiser 300 are imported as completely built-up (CBU) units. The portfolio spans multiple vehicle segments in the Indian market, including hatchbacks, MPVs and premium SUVs.
The selection of Maharashtra for the new plant is linked to its location within the Bidkin Industrial Area, which forms part of the Delhi-Mumbai Industrial Corridor, an infrastructure project aimed at supporting manufacturing and industrial activity across multiple Indian states. Maharashtra already hosts automotive manufacturing operations from several global and domestic manufacturers.
India remains one of the world's largest automotive markets. The country surpassed Japan to become the third-largest vehicle market in 2023, behind China and the United States, and has continued to record growth. Demand for SUVs has increased over the past decade, influencing product strategies across the industry. Several manufacturers have announced or implemented production capacity expansions in India in recent years to reduce import dependence and respond to changes in demand.
In its announcement, Toyota Kirloskar Motor stated that the new plant is intended to strengthen production infrastructure and improve flexibility in responding to future demand growth and market changes in India and surrounding regions. The company also stated that it intends to participate in the development of India's automotive sector and local communities in coordination with relevant stakeholders.
No total capital investment figure was disclosed. Further details regarding the SUV planned for production at the new facility have not yet been released.
The facility is scheduled to begin production in the first half of 2029, with an initial production capacity of 100,000 vehicles per year.
The announcement aligns with previously reported plans for new manufacturing facilities in Maharashtra that are expected to support domestic sales and exports to surrounding regions, including West Asia and Africa. The new plant is expected to employ approximately 2,800 workers at the start of operations and will cover core automotive manufacturing processes, including stamping, welding, painting and assembly. The first model designated for production is a new SUV, although further specifications have not been disclosed. In addition to serving domestic demand, the facility is also expected to supply vehicles to markets surrounding India, indicating an export role from the outset.
Toyota Kirloskar Motor is a joint venture between Toyota Motor, which holds an 89% stake, and Kirloskar Systems Limited, which holds the remaining 11%. The partnership has operated in India for nearly three decades. The company stated that its development in the market has taken place alongside contributors to India's automotive industry, from whom it received initial support and operational guidance.
The company currently operates two manufacturing plants, both located in Bidadi, Karnataka. The first plant was established in October 1997 and commenced production in December 1999. It manufactures several Toyota models in India, including the Innova HyCross, Innova Crysta, Fortuner and Legender, with an installed production capacity of up to 132,000 units per year. The second plant, which commenced production in December 2010 at the same Bidadi site, manufactures the Camry Hybrid, Urban Cruiser Hyryder and Hilux, with a production capacity of up to 210,000 units annually. Together, the facilities have a combined installed production capacity of up to 342,000 units per year and employ 6,466 permanent staff across a total land area of approximately 432 acres.
In addition to its locally manufactured portfolio, the company also sells models sourced through other arrangements. The Glanza, Rumion and Urban Cruiser Taisor are among the Toyota models available in the Indian market, while the Vellfire and Land Cruiser 300 are imported as completely built-up (CBU) units. The portfolio spans multiple vehicle segments in the Indian market, including hatchbacks, MPVs and premium SUVs.
The selection of Maharashtra for the new plant is linked to its location within the Bidkin Industrial Area, which forms part of the Delhi-Mumbai Industrial Corridor, an infrastructure project aimed at supporting manufacturing and industrial activity across multiple Indian states. Maharashtra already hosts automotive manufacturing operations from several global and domestic manufacturers.
India remains one of the world's largest automotive markets. The country surpassed Japan to become the third-largest vehicle market in 2023, behind China and the United States, and has continued to record growth. Demand for SUVs has increased over the past decade, influencing product strategies across the industry. Several manufacturers have announced or implemented production capacity expansions in India in recent years to reduce import dependence and respond to changes in demand.
In its announcement, Toyota Kirloskar Motor stated that the new plant is intended to strengthen production infrastructure and improve flexibility in responding to future demand growth and market changes in India and surrounding regions. The company also stated that it intends to participate in the development of India's automotive sector and local communities in coordination with relevant stakeholders.
No total capital investment figure was disclosed. Further details regarding the SUV planned for production at the new facility have not yet been released.