The shift in strategy could be a response to Chinese manufacturers who are dominating global EV sales.
US BEV production
Toyota has been ramping up its EV manufacturing capacity in the US as other companies like Stellantis and Ford have recorded writedowns. In March 2026 Toyota announced that it had invested US$800m in a Kentucky plant to “prepare for production of battery electric vehicles.”
The investment was part of a larger US$1bn commitment to US manufacturing at Kentucky and Indiana plants. This could indicate Toyota is preparing for increased electric vehicle demand in North America.
According to its annual report covering the financial year 2025, Toyota reported that sales revenues in Central and South America, Oceania, Africa and the Middle East increased by ¥131.4bn (US$841m), or 3%, to ¥4,521.2bn (US$28.95bn) in 2025 compared with 2024.
Toyota’s operating income in 2025 in those areas increased by ¥54.2bn (US$347.1m), or 27.4%, to ¥252.6bn (US$1.62bn) compared with 2024. The company attributed the increase in operating income mainly due to marketing efforts.
India as a Toyota hub
India has now surpassed Japan to become the third largest automobile market globally, according to information from the Indian Ministry of Road Transport and Highways.
According to Nikkei, the two new plants will be built in the western state of Maharashtra. The first operations will begin in 2029, with the other two scheduled to start in the 2030s. Total investment is estimated at around ¥300bn (US$1.9bn).
Toyota already operates plants in Bidadi producing models like the Corolla and Camry for regional distribution.
The report from Nikkei adds that the new plants in Maharashtra will serve as export hubs. Vehicles will be supplied to both the Indian market and those in the Middle East and Africa.
Toyota Kirloskar Motor, a Toyota led joint venture with the Indian conglomerate Kirloskar Group, recorded its strongest year sales in 2025. Total sales were 388,801 units in 2025, a growth of 19% compared to the 326,329 units sold in 2024.
The expansion will triple Toyota’s production capacity in the country to one million units by the 2030s according to Nikkei.
Suzuki Motor currently manufactures a BEV for Toyota at Suzuki Motor Gujarat in India.