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Toyota C SUV project for India dropped

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Close on the heels of announcing a new plant in Bidadi, Bengaluru, Toyota Kirloskar, the Indian subsidiary of the world’s largest car maker Toyota Motor Corporation has decided to drop the C SUV project scheduled for 2026. 

  1. Toyota C SUV, codename 340 D, for India shelved 
  2. Project did not meet technical commercial viability 
  3. Likely to look at an alternative to the C SUV

To create space for this new product, Toyota Kirloskar had decided to expand the capacity at the factory with plant 3 with a planned investment of USD 400 million (about Rs 3,320 crore). Its plants are currently operating at over 90 percent capacity.

Sources say, the project codenamed 340 D planned for a start of production in June of 2026 with a potential annual volume of 75,000 units did not meet the technical commercial viability and hence the company decided to shelve the plans. 

The product had a significant exports contribution from India of upto 50 percent – the decision to call off development is also linked to the changing demand landscape globally as well, say people in the know.

While the investment plan for the third facility has already been approved, the company is looking at an alternative product in place of C SUV, which may have been based on the global Corolla platform. We had reported about the company’s plans to bring in the Corolla Cross into India to reinforce its position in the Rs 20 lakh to Rs 50 lakh bracket, where Toyota was leader by far during the last year. 

A lower-than-expected business potential and a focus on sustainable profitable business is what led to the decision, say sources. Toyota is, however, likely to look at an alternative to the C SUV in another 6-8 months time. The decision may mean the timelines for the new factory construction and utilisation may be pushed ahead even as the company looks to ramp up its Hyryder and Grand Vitara SUV production in Bidadi.  

To a query sent by our sister publication Autocar Professional, Toyota Kirloskar spokesperson said, “As this pertains to our future corporate strategy and product plans, we would like to refrain from making any comments.”

The announcement to set up a third manufacturing facility in India was made in November 2023. The new plant, when commissioned, will create 2,000 new jobs and be able to produce over 100,000 units a year. Toyota Kirloskar’s overall annual capacity in the country with the third factory will move up to 4,10,000 units, post the operations kick-off. 

Toyota Kirloskar posted its highest ever sales in 2023 and has even guided for a strong year in 2024 thanks to very high demand for its new MPV, the Innova Hycross, and sustained demand for previous generation Innova Crysta

The company also recorded its best financial performance in FY23. However, 2024 has seen some speedbreakers emerge in the form of the recent disruption in global vehicle certification issue, which compelled the company hold despatches of Innova Crysta, Fortuner and Hilux in India temporarily. The shelving of 340 D project in India is another speedbreaker for Toyota.  

Also see:

Toyota Hilux gets a third facelift

Toyota Innova Hycross flex fuel, Mirai, Hyryder CNG showcased at Bharat Mobility Global Expo 2024

Toyota readies two new Land Cruiser SUVs



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