Toyota to Open First R&D Hub in Bengaluru, Expand Team for EV & Clean Tech

Toyota Motor Corporation is setting up its first-ever research and development (R&D) center in India, marking a significant step in the company’s expansion strategy. This move signals India’s growing importance as a key market in Toyota’s global operations. The new R&D facility will be located in Bengaluru, near Toyota Kirloskar Motor Pvt. Ltd.’s existing factory in Bidadi.

Initial Operations and Future Expansion Plans

The new R&D facility will commence operations with approximately 200 employees. However, Toyota plans to significantly scale up the workforce, reaching around 1,000 engineers by 2027. This expansion highlights the company’s long-term commitment to innovation in India’s automotive sector. Despite the scale of this investment, Toyota Kirloskar Motor has declined to comment officially on the details of the project.

India as a Hub for Clean and Green Technologies

This R&D facility follows Toyota’s 2023 reorganization, which positioned India as a central hub for its operations across the Middle East, East Asia, and Oceania regions. The automaker has also pledged substantial investments in India to advance clean and green technologies, reinforcing the country's role as a global leader in sustainable mobility solutions.

Toyota’s Strategy for the Indian Market

Despite its global reputation for electric vehicles (EVs), Toyota has yet to launch plug-in EVs in India. Instead, the company has primarily focused on gasoline and hybrid models, leveraging its collaboration with Suzuki Motor Corporation to expand its footprint in the Indian automotive sector. Toyota holds a 5.4% stake in Suzuki Motor, further cementing their strategic alliance.

Learning from Suzuki’s R&D Model

Toyota is closely studying the R&D model implemented by Suzuki’s Indian unit in Rohtak, which is one of the country’s largest automotive engineering hubs with approximately 3,000 engineers. By adopting similar strategies, Toyota aims to strengthen its research and innovation capabilities in India.

India as Toyota’s Third Major R&D Hub in Asia-Pacific

This new facility will be Toyota’s third major R&D center in the Asia-Pacific region outside Japan, following similar setups in China and Thailand. Initially, the center will cater to the Indian market, but in the future, it could evolve into a global research hub, much like Mercedes-Benz’s Bengaluru R&D center, which currently employs over 9,000 professionals.

Reviving a Decade-Old Plan

Toyota had initially considered establishing an R&D center in India back in 2010 but did not proceed with the plan. However, the company has now renewed its focus on India, leveraging its partnership with Suzuki to integrate research, development, and product innovation.

Toyota-Suzuki Collaboration on Urban Cruiser EV

One of the most notable outcomes of the Toyota-Suzuki partnership is the development of Toyota’s upcoming Urban Cruiser EV. This model is a rebadged version of Suzuki’s first electric vehicle, the e-Vitara. Production is set to begin in 2025 at Suzuki Motor Gujarat, marking a pivotal step for both companies as they jointly explore the Indian and global EV markets.

Conclusion: Toyota’s Long-Term Vision for India

Toyota’s decision to establish its first R&D center in Bengaluru reflects its long-term vision for the Indian automotive industry. By investing in research, clean technology, and EV innovation, the company is aligning itself with India’s growing demand for sustainable and high-performance vehicles. With plans to expand its workforce and deepen its collaboration with Suzuki, Toyota is positioning itself as a key player in India’s evolving automotive landscape.