Japan’s leading automaker Toyota Motor Corporation plans to build its first research and development (R&D) centre in India to help drive up sales in the world’s third-largest vehicle market, according to unconfirmed reports citing people close to the company.

The automaker’s local manufacturing subsidiary, Toyota Kirloskar Motor, plans to build the new R&D facility in Bengaluru, close to the company’s vehicle assembly plant in Bidadi. It is understood that the new facility will become operational in 2026, employing an initial 200 people before being scaled up to 1,000 engineers later on. It will be Toyota’s third R&D centre in the Asia-Pacific region outside Japan, after China and Thailand.

India is becoming an increasingly significant export base for Toyota. The automaker reported a 35% increase in vehicle sales in the country to 300,212 units last year, while production increased by 18% to 388,582 units. Among its best-selling models are the Innova Hycross, Urban Cruiser Hyryder and Hilux pickup truck.

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