Toyota Kirloskar Motor is planning an aggressive push in India, aiming to launch 15 new and refreshed models by the end of the decade while expanding its presence in rural markets, sources familiar with the matter said. The move comes as record profits in India make the market increasingly important for the Japanese automaker, according to a report by Reuters.
Facing intense competition in China, Toyota and several other global automakers have focused on India, attracted by strong economic growth averaging 8 per cent over the past three fiscal years. Toyota currently holds around 8 percent of India’s passenger car market and targets a rise to 10 percent by 2030, according to sources. Success would reduce the company’s dependence on alliance partner Suzuki, which supplies vehicles rebadged under the Toyota brand.
New models and rural focus
The planned 15 vehicles will include Toyota’s own cars, Suzuki-supplied models, and upgrades of existing models. Sources said at least two new SUVs will compete with rivals like Mahindra & Mahindra and Hyundai, alongside an affordable pickup truck aimed at rural buyers.
To deepen its rural reach, Toyota is setting up lean-format sales outlets with a limited number of cars on display and smaller two-bay workshops in smaller towns.
“Toyota has a two-pronged strategy for India — lure customers with mid-market and premium SUVs while expanding in small towns and rural areas,” a source said.
Capacity expansion and alternate-fuel push
Toyota last year announced a $3 billion investment to expand its existing southern India plant and build a new facility in western Maharashtra, which will eventually enable production of over 1 million cars annually across both sites.
The new Aurangabad plant will reportedly produce a multi-powertrain SUV, including gasoline, hybrid, and electric variants, for domestic sales and export markets. Toyota has also gained traction in alternative-fuel vehicles with models like the Urban Cruiser Hyryder SUV and Innova Hycross MPV, a segment it plans to strengthen with new launches.
Toyota sold over 300,000 vehicles in India last year, with around 60 per cent sourced from Suzuki. India is now Toyota’s third-largest market outside Japan, after the US and China, and the company is increasingly exporting cars to Africa and the Middle East.
The push in India comes amid large investments from competitors as well: Suzuki plans to invest $8 billion over five to six years, while Hyundai Motor will pump in $5 billion to expand manufacturing and R&D in the country.
