Toyota Plans Major India Expansion With New Models and Increased Production by 2028

Toyota Kirloskar Motor is preparing a significant expansion in India, with several new models set for launch between 2026 and 2028. The company aims to shift its India strategy from alliance-led growth to one increasingly based on its own platforms. This move follows Toyota's rise to a top-five position among Indian carmakers and India's emergence as the fourth-largest market for Toyota globally, surpassing Thailand and Indonesia.

Key Highlights

• Toyota to launch new Innova HyCross, C-segment SUV, Fortuner and electric MPV by 2028
• Company targets 500000 annual sales and $3-4 billion investment in India over the next decade
• Production capacity to increase by over 200000 units with new plant in Maharashtra
• Toyota shifts focus from alliance-led growth to own platforms and multi-energy technologies

Upcoming Models and Market Strategy

Toyota plans to introduce the next-generation Innova HyCross, a new C-segment SUV, an updated Fortuner, and an electric MPV. The rollout will begin in the second half of 2026 and continue through 2028. These launches mark a shift from reliance on models developed with Maruti Suzuki to a focus on Toyota's own platforms. The company will also upgrade key alliance models like the Glanza, Taisor, and Hyryder during this period.

Toyota's goal is to reach annual sales of around 500,000 units by 2028. The company is investing over $3-4 billion in India and plans to add a cumulative production capacity of 1 million units over the next decade. Over the past five years, Toyota has scaled up volumes through its partnership with Maruti Suzuki, increased localisation of hybrid technology, and expanded exports. It has also strengthened its dealer and supplier networks to handle sustained volumes between 300,000 and 400,000 units per year.

Product Pipeline and Platform Development

The next-generation Innova HyCross, codenamed 840D, will anchor Toyota's new portfolio. The Innova Crysta is expected to end its lifecycle by March 2027, with the HyCross replacing it in the lineup. A new C-segment SUV based on the same platform will follow, expanding Toyota's presence in a segment where it has had limited offerings.

The next-generation Fortuner (582D) will likely continue with diesel engines and add hybrid options. An electric MPV based on the YMC architecture, derived from the e-Vitara platform, is also in development for fleet and mobility markets. Toyota is preparing a new TNGA-C-based multi-energy platform (900D), with the Corolla Cross expected as the first model. This platform will support various body styles and powertrains, including hybrids, plug-in hybrids, electric, and internal combustion engines.

Toyota is also considering additional SUV models for export, including those from the Land Cruiser family. Products such as the FJ Cruiser may be produced for overseas markets. All these launches are scheduled between mid-2026 and the end of 2028.

Production and Market Outlook

Toyota will add over 200,000 units of annual capacity in the next two years at its Bidadi facility and a new plant in Auric City, Maharashtra. More than 30% of the new plant's output will be for exports. This expansion aims to serve both domestic and export markets as India becomes a larger part of Toyota's global manufacturing network.

Toyota remains cautious about battery electric vehicles in India, focusing on hybrids and other technologies due to slow EV adoption. The company prefers a multi-pathway approach to meet stricter emission norms and changing market demands. Toyota and Suzuki continue to collaborate on promoting less fuel-consuming vehicles, including EVs, benefiting both companies and the Indian auto industry.