Japanese automakers shift gears to India with US$ 11 billion investment push
- IBEF
- November 7, 2025
Japanese auto majors Toyota, Honda, and Suzuki are collectively investing nearly Rs. 97,504 crore (US$ 11 billion) in India, marking one of the largest foreign investment commitments in the country’s automobile sector. The move underscores India’s growing role as a manufacturing and export hub as global automakers diversify supply chains away from China. Suzuki, which holds around 40% of India’s car market, will invest Rs. 70,912 crore (US$ 8 billion) to scale up annual production to four million vehicles. Toyota will add Rs. 26,592 crore (US$ 3 billion) to expand its hybrid component supply chain and build a new facility in Maharashtra. Honda is positioning India as an export base for its upcoming Zero Series electric cars, with production beginning in 2027.
Japan’s investments in India’s transport sector have surged sevenfold since 2021, reaching Rs. 16,934 crore (US$ 1.91 billion) in 2024, while funding to China dropped sharply amid rising price wars and declining profitability. Toyota plans to launch 15 new or updated models in India by 2030, targeting a market share of 10%, while Suzuki aims to establish India as its global production hub. Honda’s Chief Executive Officer (CEO), Mr. Toshihiro Mibe, highlighted India’s importance among the company’s top three markets worldwide. Supportive policies under Prime Minister Mr. Narendra Modi’s government have strengthened India’s appeal, positioning the country as Japan’s next growth engine in the global automobile landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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