Toyota Kirloskar Motor (TKM) is significantly expanding its manufacturing capabilities in India with the establishment of a third plant in Maharashtra. The new facility, located in the Bidkin Industrial Area, is slated to commence production in the first half of 2029, focusing on a new SUV model.
Strategic Expansion to Meet Surging Demand
The decision to build a new manufacturing hub comes as TKM experiences robust growth in the Indian market. In the financial year 2025-26, the company's sales surged by 20% year-on-year, reaching 335,321 units and securing a 7% market share. This performance positions Toyota Kirloskar Motor as India's fifth-largest carmaker by volume, a success attributed partly to its global partnership with Suzuki, which facilitates the sale of affordable rebadged models alongside its core multi-purpose vehicle (MPV) and sport utility vehicle (SUV) offerings.
Currently, popular models like the Innova Hycross strong hybrid MPV face substantial waiting periods, stretching between six and 12 months. This sustained demand underscores the urgent need for increased production capacity.
New Plant Details and Economic Impact
The upcoming plant in Bidkin, Maharashtra, is projected to add an annual production capacity of 100,000 units. Toyota is expected to invest thousands of crores into this venture and aims to generate approximately 2,800 new jobs. The facility will encompass a full range of manufacturing processes, including stamping, welding, painting, and assembly.
“The new plant will be positioned to steadily deliver vehicles not only to customers in India but also to customers in surrounding regions,” Toyota stated, highlighting the strategic importance of this expansion for both domestic and export markets.
This new facility will complement Toyota's two existing plants in Bidadi, Karnataka, which collectively produce 342,000 units per annum. These sites are responsible for manufacturing a diverse range of vehicles, including the Innova HyCross, Innova Crysta, Fortuner, Legender, Camry Hybrid, Urban Cruiser Hyryder, and Hilux.
Navigating India's Competitive SUV Market
The announcement arrives at a time when India's SUV segment is increasingly competitive. Automakers are constantly innovating and expanding their product lineups to maintain market share. Toyota's strategy to introduce a new SUV model from its third plant demonstrates its commitment to strengthening its presence in this vital market segment and responding flexibly to evolving consumer demand and market dynamics in India and neighboring regions.