Toyota plans new plant, another SUV for Indian market: Report
- Increased sales momentum in the domestic Indian car market is helping add wind to the sails of Toyota in the country.
Toyota is reportedly planning to construct its third plant in India in order to increase its production capacity in the country amid booming demand for its offerings in particular and due to the overall positive sentiment in the vehicle market.
A Reuters report states that Toyota, the worlds largest carmaker in terms of production volumes, is betting big on India, the world's third-largest vehicle market in terms of sales. Citing insights from sources, the report highights that the Japanese auto giant has plans of adding to its production capabilities with yet another plant while also beginning work on developing an all new SUV.
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Toyota currently has a production capacity of around 400,000 units each year in India. This includes model it manufactures under the Maruti Suzuki brand name under the global Toyota-Suzuki partnership. A third plant will help the company increase its production by up to 30 per cent, it is reported.
Toyota dominates the passenger vehicle (PV) segment the world over but isn't quite in the big league in India. At least not in terms of sheer sales volumes. The likes of Fortuner and Innova Crysta dominate their respective segments but the smaller-sized segments have been a grey area for long. But there is a shift in play.
Batting big to driving fast
The Toyota-Suzuki partnership under which both Japense carmakers share their some of their respective models with each other only to be tweaked, rebadged and sold through their respective dealership networks, has worked well so far. Toyota sales in particular have increased with models like Urban Cruiser Hyryder and Glanza raking in the numbers. Both Hyryder and Glanza account for 40 per cent of the company's overall sales in the country.
Also watch: Toyota Urban Cruiser HyRyder: First Drive Review
But an all-new SUV could add even more momentum.
Toyota is eyeing record sales in India in 2023. Part of the reason is the strong overall demand among customers in the market. The other part of the reason could be that the solid reputation that Toyota has always enjoyed is now combining with solid products in ‘affordable’ price brackets. Where the under-development SUV will fit in isn't quite clear but the same Reuters' report highlights that the product - codenamed 340D - may be ready to hit the Indian ground running by 2026.
