Toyota Motor plans to establish three new vehicle assembly plants in India, increasing its production capacity in the country to 1 million units by the 2030s, according to media sources.

The company currently operates three manufacturing facilities in Bidadi. The expansion reflects a shift among automakers towards emerging markets as growth in more mature markets, such as the United States and China, slows. The planned plants are intended to function as export hubs, supplying vehicles to the domestic market as well as to regions including the West Asia and Africa.

The facilities will be located in the western state of Maharashtra. The first plant is scheduled to begin operations in 2029, with the remaining two expected to commence operations in the 2030s. The total investment is estimated at approximately JPY 300 billion (US$ 1.92 billion).

Toyota plans to introduce a new three-row SUV, a segment with demand in India and other emerging markets, under the Toyota Corolla nameplate. The company will also manufacture plug-in hybrid vehicles to meet demand for lower-emission mobility solutions.

With the addition of the new facilities, Toyota's total number of plants in India will increase to six, alongside its three existing plants in southern India. The existing southern plants primarily serve domestic demand, while the new facilities are expected to support both domestic sales and exports.

Maharashtra hosts the Port of Mumbai, and India maintains trade and population linkages with the Middle East and Africa.

According to a market analysis firm, Toyota's current production capacity stands at 3.1 million units in Japan, 2.2 million units in China, and 1.5 million units in the United States. The planned expansion is expected to make India the company's fourth-largest production base.

India is the world's third-largest market for new vehicle sales, after China and the United States. According to a market research firm, new vehicle sales in India are projected to reach 6.44 million units by 2030, representing a 20% increase from 2025 levels. Vehicle demand in Africa is projected to exceed 6 million units by 2050, while the Middle East market is also projected to expand.

Population growth is expected to support demand. According to the United Nations, Africa's population is projected to double to 2.5 billion by 2050, while the West Asian population is expected to increase by 50% to 700 million. India's population is projected to grow by more than 10% to approximately 1.7 billion. Growth for automakers will depend on their ability to expand into markets west of India.

India has been a market for Japanese automakers. Suzuki Motor entered the market in 1982, and its local subsidiary Maruti Suzuki holds an approximately 40% share of the passenger vehicle market.

Suzuki commenced production at a new plant in the northern state of Haryana last year and plans to begin operations at another facility in Gujarat by 2029. Suzuki supplies certain India-manufactured vehicles to Toyota Motor, including the Toyota Urban Cruiser EV. Suzuki has a presence in the small car segment, while Toyota offers multi-purpose vehicles and SUVs and is expanding its hybrid vehicle portfolio to address demand from middle-income consumers.

Global competitors are also increasing their investments in India. Hyundai Motor Company agreed to acquire a General Motors India plant in 2023, which has been used to expand SUV production. Hyundai holds a market share of over 10% in India's passenger vehicle segment.