Toyota to Spend ¥300bn on Three Maharashtra Plants for 1M Unit Capacity
Toyota Motor will invest ¥300bn ($1.90bn) to build three vehicle assembly plants in Maharashtra, boosting India capacity to one million units by the 2030s, with operations slated for 2029. The automaker also faces a fourth straight profit decline as rising material, labour costs and U.S. tariffs offset strong hybrid demand.
1. Maharashtra Plants Expansion
Toyota plans three new assembly plants in Maharashtra with a combined investment of ¥300bn to raise its India production capacity to one million units by the 2030s. The first facility is due to start operations in 2029, followed by two additional plants in the early 2030s, bringing Toyota’s total Indian plants to six.
2. Export and Production Mix
Beyond domestic supply, the new Maharashtra sites will serve as export hubs for the Middle East and Africa, leveraging proximity to the Port of Mumbai and India’s trade and demographic ties. Planned output includes three-row SUVs carrying the Corolla nameplate and plug-in hybrid vehicles aimed at emerging market demand.
3. Profitability Outlook
Toyota is set to report its fourth consecutive quarterly operating profit drop as rising material and labour costs, alongside U.S. tariffs, erode margins despite strong hybrid vehicle sales. Continued margin pressure could affect funding schedules and capital allocation for its India expansion projects.