Toyota Motor Corporation has announced plans to build a new manufacturing plant in the Bidkin Industrial Area, Maharashtra, in what is its latest and most significant commitment yet to the Indian market.
The new plant, to be operated under Toyota Kirloskar Motor, is planned to start production in the first half of 2029 with a production capacity of 1,00,000 vehicles per year. It will employ approximately 2,800 people and will carry out stamping, welding, painting, and assembly operations. The first model off the line will be a new SUV.
Toyota hit a record sales high in 2025
The announcement comes on the back of a business that has been growing at a pace that has made a third plant unavoidable. Toyota Kirloskar Motor recorded its highest-ever calendar year sales in 2025, selling 3,88,801 units — a 19% jump over the 3,26,329 units sold in 2024. Of those, 3,51,580 units were domestic sales, while 37,221 units were exported, reflecting a 42% growth in exports.
The growth has been consistent and steep. In FY2024-25, TKM sold 3,37,148 units, a 28% jump over the previous financial year, with SUV and MPV sales alone rising 35%. Just two years prior, the company had sold 2,33,346 units in 2023, itself a 46% year-on-year jump.
Toyota to expand production beyond Karnataka
Toyota currently operates its India manufacturing out of two plants in Bidadi, Karnataka, where its facility runs four divisions — Press, Weld, Paint and Assembly — and applies the Toyota Production System, combining human resources and robot technology for productivity. The company also set up Toyota Kirloskar Auto Parts in May 2004, producing transmissions for global requirements.
The Maharashtra plant will take the company beyond Karnataka for the first time. It will be positioned to steadily deliver vehicles not only to customers in India but also to customers in surrounding regions.
What Toyota says about the Indian market
In a statement, Toyota said it 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.”
Toyota acknowledged that its business in India “has progressed together with those who pioneered the Indian market,” adding that it had received “invaluable learning and support from those pioneers.”
The most recent monthly sales data underlines why the expansion could not wait. In February 2026, TKM recorded total sales of 34,034 units — up from 28,414 units in February 2025 — with 30,737 units sold domestically and 3,297 exported.
