Mahindra XUV700-rivalling Toyota 340D (Codename) will launch in early 2026 and will be produced exclusively at company’s third manufacturing plant for India
Toyota has begun developing a new Sport Utility Vehicle (SUV) for the Indian market. The new model will launch in early 2026 and become an anchor product for the company’s new factory that is being in the process of being set up. The new model, which is internally codenamed 340D, will be slotted above the Urban Cruiser Hyryder but below the Innova Hycross. This, in fact, leaves the carmaker with not much room to position an entirely new product. For the uninitiated, the Hyryder retails from Rs 10.86 – 19.99 Lakh (ex-showroom), while the Innova Hycross costs Rs 18.82 – 30.26 Lakh. This move is part of Toyota’s strategic product expansion in the Indian market. It is working with suppliers to produce 60,000 units a year when it launches in early 2026, they added.
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Upcoming Toyota SUV Being Tailor-Made for India
The upcoming D-segment SUV is being tailor-made for the Indian usage conditions. The new model will help the carmaker consolidate its position in the fast-growing Indian market. It is, in fact, at the centre of the carmaker’s plan of installing the third plant in the country. Of course, the additional production capacity will even help the carmaker meet the burgeoning demand and ease off the waiting period. Toyota India plans to install a production capacity of 500,000 units an annum by the end of the decade. The upcoming plant, which will be located in Bidadi, will play a vital role in helping the carmaker achieve the target.
Toyota recently increased its manufacturing capacity by adding a new shift at both of its existing factories. This has brought the total capacity to over four lakh units. In the first stage, the new plant will boost this capacity by another 80,000 to 120,000 units. Moreover, it will have the capability to be updated to 200,000 units per annum. All in all, the new plant will be capable of increasing the carmaker’s net production by 30%.
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Toyota India to Maruti Fronx-Based Micro SUV
To begin with, the annual production of the Toyota 340D mid-size SUV will be set at 60,000 units. With the Urban Cross Hyryder already in high demand, the carmaker could target the 7-seater segment. If so, the new model will find itself in the crosshairs of the Mahindra XUV700 and Tata Safari. Other than the new SUV, the carmaker will even launch its own version of the Maruti Fronx. Likely to be known as the Toyota Urban Cruiser Taisor, the new model could feature a handful of styling revisions. It will even mark the carmaker’s entry into the fast-growing Micro-SUV segment. The capacity expansion, along with the introduction of the upcoming SUVs, should help Toyota capture a bigger chunk of the sales pie.
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