KATHMANDU: Japanese carmakers Toyota, Honda, and Suzuki are investing heavily in India, turning it into a key vehicle production and export hub as they scale back operations in China, according to Reuters.
Toyota and Suzuki have announced a combined $11 billion investment to expand factories and boost exports. Honda plans to make India the production and export base for one of its upcoming electric cars.
Analysts say India’s low costs, large labor pool, and limited presence of Chinese EV makers like BYD make it an attractive alternative. “India is a good replacement market for China,” said Julie Boote, autos analyst at Pelham Smithers Associates.
Japan’s direct investment in India’s transport sector jumped sevenfold to $2 billion last year, while investment in China plunged 83%. Toyota aims to launch 15 new models and increase its market share to 10% by 2030, supported by new plants in southern India and Maharashtra.
Prime Minister Narendra Modi’s government is also pushing foreign investment through incentives. India produced about 5 million passenger cars last fiscal year, with exports rising 15%.
Honda, already strong in two-wheelers, will produce its “Zero series” EVs in India for export from 2027. Suzuki, through Maruti Suzuki, plans to boost annual capacity to 4 million vehicles with an $8 billion investment.
“We want to grow India as Suzuki’s global production hub,” said President Toshihiro Suzuki.
The shift signals Japan’s growing confidence in India as a long-term base for manufacturing and exports.
