Toyota Motor plans to build three new vehicle assembly plants in Maharashtra as part of a strategy to raise its production capacity in India to one million units by the 2030s, reported Nikkei Asia.

The three facilities involve a combined investment of around Y300bn ($1.90bn).

In addition to supplying the Indian market, the new sites are intended to serve as export hubs for the Middle East and Africa.

Nikkei Asia reported that these regions were selected in part because Maharashtra is close to the Port of Mumbai and because India has trade and demographic links with both markets.

The first plant is due to start operations in 2029, while the other two are scheduled to open in the 2030s.

With the expansion, Toyota will have six plants in India in total, alongside its three current facilities in southern India, which are focused on domestic supply.

Output at the new factories is set to include a three-row SUV carrying the Corolla nameplate and plug-in hybrid vehicles.

The report said this production mix is aimed at demand in India and other emerging markets.

When all three plants are running, India is expected to become Toyota's fourth-largest manufacturing base globally, behind Japan with 3.1 million units a year, China with 2.2 million, and the US with 1.5 million.

India has now become the world's third largest market in terms of annual new vehicle sales, after China and the US, according to Just Auto's parent GlobalData.

In 2025, the India light vehicle market exceeded five million units for the first time (5.19 million units) and is projected by GlobalData to grow further by around a quarter by 2030, to 6.44 million units.

The report also cited longer-term demand forecasts showing Africa exceeding six million units by 2050, backed by population growth expected to bring the continent to 2.5 billion people.

UN data cited in the report also indicated that the Middle East, forecast to reach 700 million people, is projected to record market growth as well.

Toyota's move comes amid further investment in India by rival carmakers.

Suzuki Motor, which has been present in India's passenger vehicle market through Maruti Suzuki since 1982, opened a new plant in Haryana last year and is planning another facility in Gujarat for 2029.