Toyota: Expansion Through New Factory Construction Projects

Toyota plans to construct three vehicle assembly facilities in India, according to Nikkei Asia. The manufacturing plant construction programme will triple production capacity in the country to one million units by 2030.

The facilities will be built in Maharashtra and will function as export infrastructure for Toyota's markets in Africa and the Middle East. According to Nikkei, total investment is estimated at JPY¥300bn (US$1.9bn).

The construction programme represents one of the largest automotive manufacturing infrastructure projects in India's industrial sector.

Manufacturing facility construction timeline

The first plant will begin operations in 2029. The other two facilities are scheduled to start in the 2030s, according to Nikkei. The phased construction approach will allow Toyota to scale production capacity incrementally while managing capital expenditure across the decade.

Toyota already operates manufacturing sites in India, with Bidadi plants producing models like the Corolla and Camry. The existing facilities demonstrate Toyota's established manufacturing infrastructure in the country. Suzuki Motor manufactures a BEV for Toyota at Suzuki Motor Gujarat in India, highlighting existing collaborative production arrangements.

India has surpassed Japan to become the third largest automobile market globally, according to the Indian Ministry of Road Transport and Highways. The growing market demand provides strong commercial justification for the substantial manufacturing infrastructure investment. Toyota Kirloskar Motor, a joint venture between Toyota and the Kirloskar Group, recorded its strongest year sales in 2025.

Total sales were 388,801 units in 2025, a growth of 19% compared to the 326,329 units sold in 2024. The manufacturing facilities in Maharashtra will supply vehicles to both the Indian market and those in the Middle East and Africa, according to Nikkei. The strategic location of the Maharashtra plants will support efficient logistics for both domestic distribution and international export operations.

Infrastructure investment for export markets

Toyota reported that sales revenues in Central and South America, Oceania, Africa and the Middle East increased by JPY¥131.4bn (US$841m), or 3%, to JPY¥4,521.2bn (US$28.95bn) in 2025 compared with 2024. 

The company's operating income in 2025 in these areas increased by JPY¥54.2bn (US$347.1m), or 27.4%, to JPY¥252.6bn (US$1.62bn) compared with 2024. The company attributed the increase in operating income mainly to marketing efforts.

This plant construction programme in Maharashtra will triple Toyota's production capacity in the country to one million units by the 2030s. The facilities will serve as export hubs for the Middle East and Africa markets. The construction of dedicated export-focused manufacturing infrastructure reflects Toyota's strategy to establish regional production centres serving multiple markets.

Toyota has maintained a focus on hybrid models rather than positioning itself entirely toward BEVs. The company also develops fuel cell electric vehicles and has been working on the technology since 1992.

US plant investment programme

Toyota announced in March 2026 that it had invested US$800m in a Kentucky plant to prepare for production of battery electric vehicles. The investment was part of a larger US$1bn investment in US manufacturing at Kentucky and Indiana plants. The plant upgrades include new production lines and equipment installation to support EV assembly operations.

The Financial Times reported that Toyota doubled EV sales in the first three months of 2026 to a record 79,002 compared with the same period last year. The introduction of seven new models lifted its line-up of electric cars to 19.

Toyota Chairman Akio Toyoda has argued hybrids have a better environmental impact than BEVs. In an interview with Automotive News in 2025, Akio claims: "We have sold some 27 million hybrids. Those hybrids have had the same impact as nine million BEVs on the road."

Chinese brands such as BYD are dominating the global EV market, with BYD overtaking Tesla earlier this year to become the world's top EV seller. BYD partnered with Toyota on EV research and development and battery technology.

Toyota has been ramping up its EV manufacturing capacity, particularly in the US, as other companies like Stellantis and Ford have recorded writedowns. The facility development in India and the US plant investments could show an attempt to counter China's growing lead in the sector. The parallel construction programmes across multiple regions demonstrate Toyota's commitment to expanding global manufacturing infrastructure.