On Tuesday, Toyota Motor announced a significant investment of nearly $400 million to establish its third manufacturing facility in India, responding to escalating demand in the region. The forthcoming plant, situated in the southern state of Karnataka where Toyota already operates two facilities, is poised to generate 2,000 new jobs and boast an annual production capacity exceeding 100,000 units. This move elevates Toyota’s total annual capacity in India to 410,000 units, marking the automaker’s first capacity expansion in over a decade.
Masakazu Yoshimura, Managing Director and CEO of Toyota Kirloskar Motor, expressed the company’s ongoing optimism for the Indian market. The expansion not only addresses the immediate demand but also holds the potential for fostering growth within the supplier ecosystem, according to Yoshimura.
Toyota’s surge in India can be attributed to a global partnership with Suzuki Motor, wherein vehicles initially developed by Indian partner Maruti are adapted and sold under both Japanese brands. Approximately two-thirds of Toyota’s existing production capacity is utilized by Maruti Suzuki as part of this collaborative arrangement.
This strategic expansion in India occurs as Toyota encounters sluggish growth in European and North American markets, coupled with intensified competition from Chinese players in Southeast Asia. The investment underscores Toyota’s commitment to meeting the evolving demands of the Indian market and solidifying its position amid shifting global dynamics.
