Japanese automaker Toyota Motor has announced plans to build a new vehicle manufacturing plant in the Bidkin Industrial Area in Maharashtra, India.

Production is scheduled to start in the first half of 2029.

The site will operate under Toyota Kirloskar Motor and is set to have an annual production capacity of 100,000 vehicles.

It is also expected to employ about 2,800 people.

Manufacturing at the plant will cover stamping, welding, painting and assembly.

The facility is intended to manufacture a new sport utility vehicle (SUV) model.

Toyota said the plant will be set up to supply vehicles to customers in India and nearby regions, with the aim of supporting a flexible response to demand growth and market changes.

The company described the move as part of its longstanding business presence in India and acknowledged the contribution of local partners and pioneers to its operations in the country.

Toyota said it plans to continue contributing to the development of India’s automotive industry and wider society through the new facility, with support from stakeholders and local communities.

Earlier this month, a report said the company unveiled plans to build three new vehicle assembly plants in Maharashtra as part of a strategy to increase its production capacity in India to one million units by the 2030s.

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

Alongside serving the Indian market, the new sites are intended to act as export hubs for the Middle East and Africa.

In its latest financial results, Toyota Motor reported a 21.5% fall in operating income for FY26 as US tariffs, higher costs and foreign exchange headwinds affected profitability despite resilient vehicle sales and pricing.

The company posted operating income of Y3.76tn ($39.81bn) for the fiscal year ended March 2026, with a Y1.38tn tariff impact exceeding gains from higher vehicle sales volumes, pricing revisions and growth in value chain revenues.