Key takeaways
- Toyota establishes its first R&D centre in India, aiming to hire 1,000 engineers by 2027.
- Bengaluru facility will enhance collaboration with Suzuki, focusing on clean and green technologies.
- Toyota's R&D centre may evolve into a global hub, similar to Mercedes-Benz’s facility in Bengaluru.
- Upcoming Urban Cruiser EV reflects joint efforts with Suzuki to tap into Indian and global EV markets.
- Previous plans for an R&D centre in 2010 were abandoned; current strategy emphasizes strong local presence.
Toyota Motor Corp is setting up its first R&D centre in India, reinforcing its commitment to the country as a key market. The facility, located in Bengaluru, will start with a team of about 200 employees and is expected to expand to around 1,000 engineers by 2027, according to Bloomberg.
The decision follows Toyota’s move last year to designate India as a hub for its operations across the Middle East, East Asia, and Oceania. This initiative is part of the automaker’s broader strategy to enhance collaboration with Suzuki Motor Corp. and establish India as a centre for clean and green technologies.
Toyota’s new R&D facility will be its third in the Asia-Pacific region outside Japan, following similar investments in China and Thailand. While initially focused on the Indian market, the centre could evolve into a global R&D hub, mirroring Mercedes-Benz’s Bengaluru facility, which employs over 9,000 people.
The automaker is yet to introduce plug-in electric vehicles in India, relying instead on gasoline and hybrid models. Toyota has also leveraged its partnership with Suzuki Motor Corp., in which it holds a 5.4% stake, to strengthen its presence in the world’s third-largest vehicle market.
The company is closely observing Suzuki’s R&D operations in Rohtak, which is one of India’s largest auto engineering hubs, employing approximately 3,000 engineers.
Toyota previously considered establishing an R&D centre in India in 2010 but did not proceed with the plan. Now, the company is intensifying its partnership with Suzuki to integrate R&D and product development.
A key example of this collaboration is Toyota’s upcoming Urban Cruiser EV, a rebadged version of Suzuki’s first electric vehicle, the e-Vitara. The model, set to be manufactured at Suzuki Motor Gujarat from 2025, marks the automakers’ joint efforts to enter both Indian and global EV markets.
