Toyota, already increasing capacity at its Bangalore facilities by almost 50%, could add a third Indian plant to meet demand, according to local media reports.

The company’s two Karnataka plants have a combined capacity of 210,000 units and the company confirmed last week that this will be increased to 310,000 by next March.

The Hindustan Times reported a new factory could be built at Hosur in Tamil Nadu and be operational by 2016. Toyota told the newspaper nothing had yet been decided but did not deny the speculation.

The development comes against a background of record sales for the Innova utility vehicle this year, up 34% to 73,000 in the first five months of the year over the same period last year.