Toyota to build 3 factories in India, tripling production in the country
Toyota Motor plans to build three new car assembly plants in Maharashtra, India, which will triple production capacity in the country to 1 million units by the 2030s, as automakers increasingly focus on emerging markets amid slowing growth in the United States and China, according to Nikkei.
The first plant is scheduled to start operating in 2029, and two more in the 2030s; the total investment is estimated at about 300 billion yen ($1.9 billion). The new facilities will serve both the Indian market and exports to the Middle East and Africa, which will be facilitated by Maharashtra's access to the port of Mumbai and India's strong trade and interpersonal ties with these regions. Toyota will launch a new three-row Corolla SUV, and will also produce plug-in hybrid vehicles for environmentally conscious consumers. The expansion will expand Toyota's factory network in India to six locations and make India the company's fourth-largest manufacturing base after Japan, China and the United States.
India is already the third largest new car market in the world, with sales projected to reach 6.44 million units by 2030. Toyota's move is a continuation of the long-term success of Japanese automakers in India, led by Maruti Suzuki, which holds 40% of the passenger car market, and comes amid the expansion of local production by Suzuki, Hyundai, and other global competitors.