Toyota is reportedly planning to build its third manufacturing plant in India to extend its production capacity in the country.
One of the two sources familiar with the plans stated that the world’s biggest car maker aims to have the facility eventually boost its production to 200,000. Toyota intends to produce vehicles at the plant with an initial 80,000-120,000 capacity annually.
The potential expansion marks the first time the company has made such a move in the country in over ten years. It also comes from its collaboration with Suzuki Motor, which has aided in higher domestic volumes.
Toyota has seen strong customer demand in the market for its vehicles. The Japanese car giant has also solidified its reputation for making quality, cost-friendly products.
Toyota’s sales in India, the world’s third-largest auto market, have increased because of its global partnership with Suzuki. Their team-up has allowed them to take, modify, and sell the vehicles of their partner.
Vehicles formerly from Maruti Suzuki, including the Glanza hatchback and Urban Cruiser Hyryder sport utility vehicle (SUV), now represent 40% of Toyota’s India sales.
The two Japanese car makers’ partnership has shown positive outcomes for their profits. A report earlier in September stated that Toyota aims to make record domestic sales this year.
In May, Toyota launched its battery electric vehicle (BEV) dedicated organization, BEV Factory. The company swore that its next-generation electric vehicles (EVs) would provide a longer mile range and faster charging for less cost.
Toyota has also revealed several innovations in June. That included advanced battery plans, improvements in aerodynamics, and manufacturing upgrades as it aims to drive EV sales higher with its next-gen electric cars.
India Observes Growth in Car Sales
Toyota’s possible expansion in India came when markets such as Europe and North America were experiencing a growth slowdown and as competition from Chinese carmakers arose.
Toyota’s two India manufacturing facilities are located in Bidadi, Karnataka. It plans to build its third plant in the same location. In May, including a third shift at two sites boosted annual capacity, leading to a 30% increase to 400,000 units.
The two sources said Toyota’s upcoming 340D C-segment SUV bridges the gap between the Urban Cruiser Hyryder and the larger Innova Hycross.
The automaker aims to reach a 500,000-vehicle annual production capacity, including for Suzuki models, by the end of the decade.
