Toyota Kirloskar Motor (TKM) on Monday announced plans to establish a greenfield vehicle manufacturing facility in Maharashtra’s Bidkin Industrial Area, marking one of the company’s biggest manufacturing bets in India in recent years as it seeks to deepen its presence in the country’s fast-growing passenger vehicle market.

The new plant, scheduled to commence production in the first half of 2029, will supplement the company’s existing manufacturing operations in Bidadi, Karnataka, where it currently operates two plants with a combined installed production capacity of 3.42 lakh units annually.

It may be recalled that in 2024, TKM had signed a Memorandum of Understanding (MOU) with the Maharashtra government to examine the setting-up of a green field manufacturing facility at Chhatrapati Sambhaji Nagar.

Capacity expansion backed by strong India growth

The expansion comes at a time when the automaker is witnessing strong momentum in India. The company reported total sales of 4,06,081 units in FY26, registering a 20% year-on-year growth, driven by robust demand for SUVs and MPVs such as the Innova HyCross, Fortuner and Urban Cruiser Hyryder. Domestic sales rose 19% to 3.67 lakh units during the fiscal year, while exports surged 41%.

In a statement, the company said the Maharashtra facility is aimed at “strengthening Toyota’s business foundation in the Indian market” while also serving customers in surrounding regions through exports.

Exports and SUV demand drive manufacturing push

“The new plant will be positioned to steadily deliver vehicles not only to customers in India but also to customers in surrounding regions,” the company said.

The company added that the investment reflects its long-term commitment to India and its strategy of building a flexible production ecosystem capable of responding to changing market dynamics and future demand growth.

“Toyota will continue strengthening its production structure to enable flexible response to future demand growth and market changes in India and surrounding regions, and to deliver products in a timely manner that customers choose,” it said.

India emerges as strategic hub in Toyota’s global network

The move also underlines the growing strategic importance of India in Toyota’s global manufacturing and export network. Industry analysts note that rising demand for utility vehicles, improving infrastructure, and India’s emergence as an export hub are prompting global automakers to expand local production footprints.

The company currently manufactures models such as the Innova HyCross, Fortuner, Legender, Camry Hybrid and Hilux in India, while also selling alliance products including the Glanza and Rumion. It employs over 6,400 people across its India operations.