Revving Up Success: Toyota's Mid-Size SUV Venture in India

In response to the positive reception of models like the Glanza and Hyryder, Toyota is poised to replicate its success by venturing into the mid-size SUV segment in India. Toyota's collaboration with Suzuki has bolstered its sales figures, with Glanza and Hyryder contributing to a substantial 40% of Toyota's sales in the Indian market. However, as of now, both Toyota and Maruti Suzuki lack dedicated offerings in the mid-size SUV category. This is set to change in the coming years, as Toyota is actively developing a new SUV designed to compete with popular models such as the XUV700, Tata Harrier, and MG Hector.

The forthcoming mid-size SUV from Toyota, currently codenamed "340D," is anticipated to make its debut around 2026. It will be manufactured at a new Toyota plant being established to cater to the growing demand, marking Toyota's third manufacturing facility in India. This additional production capacity will play a pivotal role in the initial years, with Toyota aiming to produce approximately 60,000 units annually upon the SUV's launch. The plant's capacity is projected to range from 80,000 to 120,000 vehicles per year during its first year of operation, with room for expansion to around 200,000 units annually. This expansion will increase Toyota's overall production capacity by about 30%.

The decision to enter the mid-size SUV segment aligns with the robust growth this category has witnessed, making it a promising market for Toyota. Leveraging their expertise in SUVs, akin to the successes of the Hyryder and Grand Vitara in the compact SUV sector, Toyota aims to bridge the gap in its product portfolio between the Hyryder and Innova Hycross models. Furthermore, it's speculated that a rebadged Maruti version may also be introduced at a later date. There's potential for Toyota to explore export markets, particularly those with right-hand drive systems, for this new mid-size SUV.

In terms of performance, Toyota's upcoming mid-size SUV is expected to offer both hybrid and fully electric powertrains, aligning with the industry trend toward electrification. The SUV is poised to feature an extensive array of premium features, including a large touchscreen, leatherette upholstery, a dedicated connectivity suite, and advanced driver assistance systems (ADAS).

In summary, Toyota's strategic move to introduce a mid-size SUV in the Indian market reflects its successful partnership with Suzuki and aims to tap into the growing demand in this segment, bolstering its presence and offerings in the competitive Indian automotive landscape.