Toyota Motor Corp. is making a significant move in India by establishing its first research and development (R&D) center in the country through its local unit. This decision highlights the increasing importance of the Indian market in Toyota’s global strategy.

A Major R&D Investment in Bengaluru

The new Toyota R&D center will be set up in Bengaluru, close to Toyota Kirloskar Motor Pvt.’s existing factory in Bidadi. Initially, it will begin operations with around 200 engineers and is expected to scale up to 1,000 engineers by 2027. The facility will be one of Toyota’s key centers in the Asia-Pacific region, following its R&D investments in China and Thailand.

Toyota aims to leverage India’s engineering talent and automotive expertise to develop electric and hybrid vehicle technologies, aligning with its sustainability goals.

India: A Hub for Toyota’s Clean Energy and Mobility Future

Last year, Toyota restructured its India operations to serve as a hub for markets across the Middle East, East Asia, and Oceania. With this, the company has committed to major investments in clean and green technologies.

Currently, Toyota has not launched plug-in electric vehicles (EVs) in India, relying instead on gasoline and hybrid models. However, its partnership with Suzuki Motor Corp., in which Toyota holds a 5.4% stake, is helping it penetrate India’s EV and hybrid vehicle market.

Toyota is closely observing the R&D operations at Suzuki’s Rohtak facility, one of India’s largest automotive engineering hubs with approximately 3,000 engineers. The new Toyota R&D facility in Bengaluru could follow a similar path and evolve into a global R&D hub, similar to Mercedes-Benz’s center in Bengaluru, which employs over 9,000 engineers.

Toyota-Suzuki Partnership: A Strategic Collaboration for EV Development

Toyota and Suzuki have been working together to co-develop vehicles, including electric models. A prime example of this is the upcoming Toyota Urban Cruiser EV, a rebadged version of Suzuki’s first electric vehicle (e-Vitara).

This new model, which will be built at Suzuki Motor Gujarat from 2025, marks Toyota’s entry into India’s growing electric vehicle segment. This collaboration will help both companies compete in India’s price-sensitive EV market while tapping into global opportunities.

Toyota’s R&D Expansion: A Long-Awaited Move

Toyota had initially considered an R&D center in India back in 2010, but the plan never materialized. However, with the growing importance of India in the global auto industry and Toyota’s focus on sustainable mobility, the company is now doubling down on its investments.

The Toyota-Suzuki partnership will likely play a crucial role in shaping Toyota’s EV and hybrid strategy in India. As the third-largest vehicle market in the world, India presents a massive opportunity for Toyota to expand its presence in the electric and hybrid vehicle segment.

Toyota’s Future in India’s Auto Market

With this new Bengaluru R&D center, Toyota is setting the stage for long-term innovation in India. The facility will not only cater to the local market but may also become a global hub for automotive research and development, similar to other major auto R&D centers in Asia.

As the Indian government pushes for electrification, Toyota’s investment in clean mobility solutions will play a crucial role in the country’s automotive transformation.

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