Toyota Stops Project One Of The SUVs For 2026 In India, This Is The Cause

Toyota, the world's largest vehicle maker, decided to stop the SUV project in segment C in 2026 in India before building a new factory in Bidadi, Bengaluru.

Reporting from Autocar India, Monday, February 12, through Toyota Kirloskar, a vehicle with the name 340 D which is planned to start production in June 2026 with an annual volume potential of 75,000 units reportedly not fulfilling technical commercial eligibility so that this plan is postponed.

According to reports, this product will have an export contribution from India of up to 50 percent. The decision to terminate is also related to changes in the demand landscape globally.

Nonetheless, the company is currently looking for an alternative to SUV C which is likely to be based on a global platform from the Corolla Cross. The manufacturer said the resulting business potential would be lower and focused on a sustainable profitable business was the cause of the decision.

"Because this is related to the company's strategy and our future product plans, we refrain from commenting on anything," said a Toyota spokesman for Kirloskar.

However, Toyota will look for alternative models that fill this segment in the next six to eight months. Thus, manufacturers can build and utilize new factories earlier than before in order to increase the production of the Hyryder SUV in Bidadi.

Previously, the company had announced to establish a third manufacturing company in India created in November 2023. The facility will create 2,000 new jobs and be able to produce more than 100,000 units per year.

According to Toyota claims, the overall annual capacity of the facility with a third plant will increase to 410.000 units, once operations begin.

During 2023, the manufacturer has recorded its highest sales in India thanks to high MPV demand, namely Innova Hycross, which is Innova Zenix's twin, and Innova Hycross.

However, by 2024 there will be some obstacles that arise in the form of interference in the issue of global vehicle certification, which forces companies to temporarily delay deliveries of the Crypta, Fortuner, and Hilux Innovas in India.