Toyota Likely to Establish Third Plant in India, New SUV in the Works?

Toyota, a Japanese automaker, reportedly intends to build its third factory in India to boost production. This speculated move is considered a result of its alliance with Suzuki, which has significantly enhanced the domestic production output. Currently, Toyota operates two factories in India - one in Bidadi and another in a town located in the southern Indian state of Karnataka. Industry experts predict that the addition of this new factory would boost Toyota's manufacturing capacity in our market by up to 30%, from its current production of 4,00,000 vehicles. The carmaker, according to market reports, also plans to develop a new sport utility vehicle (SUV) for the Indian market, in addition to building a new plant. Let's explore the manufacturer's possible advancements in more detail.

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Toyota's Third Manufacturing Facility: Key Highlights

Toyota has not yet made any announcement. Industry reports, however, suggest that the third plant will be constructed in the country by the Japanese auto giant with an initial production capacity ranging from 80,000 to 1,20,000 vehicles on an annual basis, which may later increase to around 2,00,000 units. This significant development is expected to greatly enhance the company's current production capacity, which is 4,00,000 units annually, to up to 30%.

A New Toyota SUV in the Works?

In addition to a new plant, Toyota reportedly plans to manufacture a brand-new SUV exclusively for our market. The upcoming car is believed to be a flagship item of the new factory. While there is no official confirmation, it is expected to go on sale in the latter half of 2026.

The partnership between Toyota and Suzuki has been successful so far, as evidenced by sales. As part of this agreement, the two automakers swap some of their models, which are modified, rebranded, and then marketed through their respective supply channels. Particularly for Toyota, sales have improved as a result of the success of models like the Glanza and the Urban Cruiser Hyryder. According to reports, these two vehicles contribute to 40% of the company's overall sales.

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It's worth mentioning that Maruti Suzuki accounts for a large portion, approximately two-thirds of Toyota's current production capacity as a part of their agreement to produce vehicles for both automakers. 

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