Toyota Motor Corporation, a Japanese automaker, has begun the process of increasing manufacturing capacity in India, with two plants operating at full capacity, a senior company official said on Oct 26. Board Member and Executive Vice President Yoichi Miyazaki confirmed the development to the media on the sidelines of the Japan Mobility Show here, saying the company has reached full plant capacity in India.

"We have started a discussion (on the matter)," he said when asked if the company plans to invest in capacity enhancement in the country.

He claims that demand for automobiles, particularly higher-end models, has increased in India since COVID-19.

"After Covid, the market recovery is very strong (in India) in comparison to other countries, so we believe demand itself is very strong in India," said a company official.

Toyota Kirloskar Motor, based in Bengaluru, is a joint venture between Toyota Motor Company and the Kirloskar Group that operates two plants with a total production capacity of 3.42 lakh units per year. With increased demand resulting in long wait times for certain products, the automaker is now looking to establish a third plant in India.

Miyazaki believes that the gradual increase in acceptance of larger cars in the Indian car market is a good sign for the automaker. When asked if the shift in the Indian car market from small cars to higher segments makes the market more appealing for Toyota, he stated, "With the strength of higher segments going up in the Indian market, it tells us it is now Toyota's time." This year, TKM has seen a significant increase in demand for its models.