Toyota To Build New 100,000-Units-A-Year Car Factory In Maharashtra

The carmaker declined to disclose the total capital investment figure in the new venture.

The plant, to be located in Chhatrapati Sambhaji Nagar District’s Bidkin ‌Industrial ⁠Area, will manufacture a new SUV model and would ⁠employ about 2,800 people at the time of the launch, Toyota Kirloskar Motor said in a statement.

The carmaker’s move to expand its footprint in the world's third largest car market and fastest-growing vehicle market comes on the back of rising demand for its vehicles. India surpassed Japan to become the third-largest vehicle market in the world in 2023, trailing only China and the United States.

The new facility is planned to begin production in the first half of 2029, with an initial capacity of 100,000 vehicles per year.

The factory will cover the full range of core automotive manufacturing processes, including stamping, welding, painting, and assembly.

The first model designated for production is a new SUV, though further specifications about the vehicle have not been disclosed.

In addition to serving domestic demand, TKM indicated that the facility will supply vehicles to customers in regions surrounding India, suggesting an export role for the new plant from the outset.

Demand for SUVs in the Indian market has risen sharply over the past decade, reshaping the product strategies of nearly every automaker operating in the country with several manufacturers announcing or completing capacity expansions in India.

At present the company operates two manufacturing plants, both located in Bidadi in Karnataka. It manufactures several of Toyota's widely sold models in India, including the Innova HyCross, Innova Crysta, Fortuner, and Legender, with an installed capacity of up to 132,000 units per year.

The second plant, located on the same Bidadi site, produces the Camry Hybrid, Urban Cruiser Hyryder, and Hilux, with a capacity of up to 210,000 units annually.

Together, the two facilities carry 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.