Why Toyota is building its third plant in India
New plant will have a production capacity of 100,000 units per year and is planned to start production in the first half of 2029
- May 12, 2026,
- Updated May 12, 2026 12:46 PM IST
Japanese carmaker Toyota is expected to invest thousands of crores to set up a new plant with a capacity to manufacture 100,000 vehicles a year in Maharashtra’s Bidkin.
Toyota Kirloskar Motor has gone on to become India’s fifth largest carmaker by volume, thanks to its global partnership with Suzuki which allows it to sell affordable rebadged models while focusing on its core multi-purpose vehicle (MPV) and sport utility vehicle models.
According to data released by the Federation of Automobile Dealers Associations (FADA), Toyota Kirloskar Motor’s sales rose 20% year-on-year to 3,35,321 units in the financial year 2025-26, taking its market share to 7%. This puts Toyota Kirloskar Motor ahead of Kia India and behind Hyundai Motor India in terms of sales.
MUST READ: BT Explainer: Here’s how to spot fake traffic challans and avoid being trapped
The carmaker’s product portfolio commands a strong waiting period. Toyota’s Innova Hycross strong hybrid MPV has a waiting period stretching anywhere between six and 12 months.
To strengthen its business in the Indian market, Toyota Kirloskar Motor has announced its plan to set up a new vehicle manufacturing plant in the Bidkin Industrial Area of Maharashtra to produce a new SUV model.
The new factory, which will have a production capacity of 100,000 units per year, is planned to start production in the first half of 2029. Toyota is looking to employ around 2,800 people for the new plant that will have stamping, welding, painting and assembly processes.
“The new plant will be positioned to steadily deliver vehicles not only to customers in India but also to customers in surrounding regions,” Toyota said in a statement.
MUST READ: From loans to FASTag: How Cars24 wants to control your entire car journey
The Japanese automaker’s existing two plants in Karnataka’s Bidadi currently produce Innova HyCross, Innova Crysta, Fortuner, Legender, Camry Hybrid, Urban Cruiser Hyryder, and Hilux. Both these plants have a combined capacity of 3,42,000 units per annum.
This announcement comes at a time when the SUV space has become quite crowded in India, and no automaker can rely on limited product lineup to sustain its market share.
Toyota said it will continue strengthening its production structure to enable flexible response to future demand growth and market changes in India and surrounding regions.
Japanese carmaker Toyota is expected to invest thousands of crores to set up a new plant with a capacity to manufacture 100,000 vehicles a year in Maharashtra’s Bidkin.
Toyota Kirloskar Motor has gone on to become India’s fifth largest carmaker by volume, thanks to its global partnership with Suzuki which allows it to sell affordable rebadged models while focusing on its core multi-purpose vehicle (MPV) and sport utility vehicle models.
According to data released by the Federation of Automobile Dealers Associations (FADA), Toyota Kirloskar Motor’s sales rose 20% year-on-year to 3,35,321 units in the financial year 2025-26, taking its market share to 7%. This puts Toyota Kirloskar Motor ahead of Kia India and behind Hyundai Motor India in terms of sales.
MUST READ: BT Explainer: Here’s how to spot fake traffic challans and avoid being trapped
The carmaker’s product portfolio commands a strong waiting period. Toyota’s Innova Hycross strong hybrid MPV has a waiting period stretching anywhere between six and 12 months.
To strengthen its business in the Indian market, Toyota Kirloskar Motor has announced its plan to set up a new vehicle manufacturing plant in the Bidkin Industrial Area of Maharashtra to produce a new SUV model.
The new factory, which will have a production capacity of 100,000 units per year, is planned to start production in the first half of 2029. Toyota is looking to employ around 2,800 people for the new plant that will have stamping, welding, painting and assembly processes.
“The new plant will be positioned to steadily deliver vehicles not only to customers in India but also to customers in surrounding regions,” Toyota said in a statement.
MUST READ: From loans to FASTag: How Cars24 wants to control your entire car journey
The Japanese automaker’s existing two plants in Karnataka’s Bidadi currently produce Innova HyCross, Innova Crysta, Fortuner, Legender, Camry Hybrid, Urban Cruiser Hyryder, and Hilux. Both these plants have a combined capacity of 3,42,000 units per annum.
This announcement comes at a time when the SUV space has become quite crowded in India, and no automaker can rely on limited product lineup to sustain its market share.
Toyota said it will continue strengthening its production structure to enable flexible response to future demand growth and market changes in India and surrounding regions.