Toyota and Honda Make India Their New Car Production Hub as They…

Sarah J · 2025-11-10T23:12:18.000Z

Japanese automakers Toyota, Honda, and Suzuki are investing over $11 billion to expand car production and exports from India, marking a major shift away from China amid supply chain realignments and growing competition from Chinese EV makers like BYD. India’s low costs, large labor pool, and pro-business incentives from the Modi government are attracting manufacturers seeking alternatives to China. Toyota plans 15 new models and new plants to boost capacity beyond 1 million vehicles, while Honda will produce and export its upcoming “Zero series” electric cars from India by 2027. Suzuki, already India’s top carmaker, is expanding to produce 4 million vehicles annually to make India its global export base. Japan’s investment in India’s transport sector has risen sevenfold since 2021, while investment in China dropped 83%. India’s protectionist stance toward Chinese firms has further benefited Japanese carmakers. Despite challenges from local players like Tata Motors and Mahindra, the Japanese see India as a key market for growth and global competitiveness.

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Toyota and Honda Make India Their New Car Production Hub as They… | SEINET