Why is Toyota doubling down on India?

Toyota is building a brand-new manufacturing plant in Maharashtra as the Japanese auto giant gears up for India’s booming SUV demand. As per media reports suggest Toyota could invest nearly ₹20,000 crore into this greenfield project.

The deets: the new factory will come up in the Bidkin Industrial Area near Aurangabad and is expected to start operations in 2029. The plant will be capable of producing 1 lakh vehicles annually and create around 2,800 jobs initially.

Toyota will manufacture a new SUV at the facility, although the company hasn’t revealed the model yet. 

Toyota already runs two plants in Karnataka with a combined capacity of over 3.4 lakh vehicles annually. But with demand rising both in India and nearby export markets, the company clearly wants more room to grow.

Big theme: sub-4 metre SUVs are dominating Indian roads, with Tata Nexon leading February sales at 19,430 units, followed by Maruti Brezza at 17,863 units. Last month Mahindra & Mahindra reported a sharp rise in electric SUV sales and overall vehicle dispatches.

SUVs are becoming India’s new family car. Buyers are increasingly shifting from small hatchbacks to bigger, feature-packed SUVs, pushing automakers into an aggressive expansion race.