March 23, 2025 – Toyota Motor Corporation is setting up its maiden research and development center through its Indian subsidiary, marking a significant rise in the importance of the Indian market within Toyota’s global strategy, according to Bloomberg sources with knowledge of the matter.
The new R&D facility, located in Bangalore, will initially operate with a team of around 200 individuals and is projected to expand to around 1,000 engineers by 2027.
The establishment of this R&D facility follows Toyota’s repositioning of India as the regional hub for operations in the Middle East, East Asia, and Oceania last year. Toyota has also announced a series of investment plans aimed at establishing India as a global center for clean energy technologies.
Currently, Toyota has not introduced plug-in electric vehicles in India and relies on gasoline and hybrid models, along with its partnership with Suzuki Motor Corporation, to drive sales in the world’s third-largest automotive market (note: Toyota holds a 5.4% stake in Suzuki).
Toyota had considered setting up an R&D center in India in 2010 but ultimately failed to materialize the plan. Now, Toyota has decided to strengthen its collaboration with Suzuki by integrating R&D and product development. Toyota is currently planning to launch the fully electric Urban Cruiser in India, a rebadged version of Suzuki’s first electric vehicle, the e-Vitara.
This deepening of cooperation comes at a crucial time. Following the death of Suzuki’s long-time leader, Osamu Suzuki, the company is striving to consolidate its position in the Japanese market, where it lags far behind Toyota and Honda.
Meanwhile, Toyota is placing greater focus on the Indian market as its share in the Chinese market declines, with Chinese local manufacturers such as BYD becoming increasingly competitive.
