Toyota plans 15 new models and rural expansion in India, aiming for 10% market share.

Japanese automaker Toyota plans a significant expansion in India, announcing intentions to introduce 15 new and refreshed vehicle models by the end of the decade. This move is fueled by robust profits and India's consistent economic growth, making it a key market for investment, especially as competition intensifies elsewhere like China. Toyota aims to boost its share of India's passenger car market to 10 percent from the current 8 percent, reducing its reliance on alliance partner Suzuki for rebadged models. The company has committed over $3 billion to expand existing production and build a new plant in Maharashtra. The upcoming product line-up will include Toyota's own vehicles, models from Suzuki, and updated existing ones, with expectations for at least two new SUVs and an affordable pickup truck targeting rural markets. Toyota is also developing a strategy for rural India by establishing lean-format sales outlets and smaller workshops. This two-pronged approach aims to attract customers with mid-market and premium SUVs while also capturing buyers in smaller towns and rural areas.

Impact This aggressive expansion by Toyota is expected to intensify competition within the Indian automotive sector, particularly in the SUV and utility vehicle segments. It will likely drive innovation and product development among competitors and could lead to increased investment in manufacturing and supply chains within India. The focus on rural markets suggests a strategic effort to tap into a previously underserved segment, potentially boosting sales volumes significantly for Toyota and its partners. The success of this plan could also influence Toyota's global strategy and its relationship with Suzuki. Impact rating: 8/10

Terms: Rebadged: A vehicle model from one manufacturer that is sold under another manufacturer's brand name. SUVs (Sport Utility Vehicles): Vehicles that combine elements of passenger cars with features from off-road vehicles, typically with higher ground clearance and four-wheel drive options. Lean-format sales outlets: Retail spaces designed to be efficient and cost-effective, often featuring a limited display of vehicles. Alliance partner: A company with which another company forms a strategic partnership to achieve common goals. MPV (Multi-Purpose Vehicle): A type of vehicle that can be used for transporting both people and cargo, often larger than a sedan or hatchback. Powertrains: The system in a vehicle that generates power and delivers it to the wheels, including the engine, transmission, and drivetrain. Hybrid: A vehicle that uses more than one type of power, typically an internal combustion engine and an electric motor.