Toyota scraps 'C SUV' project for India: Here's why
Toyota Kirloskar, the Indian arm of Toyota, has decided to scrap its "C SUV" project, internally known as 340 D. The project failed to meet technical and commercial viability, prompting the company to explore other options for a C SUV within the next six to eight months. This decision follows the automaker's announcement of a new $400 million (approximately Rs. 3,320 crore) plant in Bidadi, Bengaluru.
Factors behind shelving the project
Initially, the 340 D project aimed to begin production in June 2026 with an annual volume of 75,000 units. However, due to lower-than-anticipated business potential and a focus on sustainable profitability, Toyota chose to abandon the project. Global shifts in demand also played a role in this decision. The C SUV was expected to have up to 50% of its production exported from India.
Alternative products and impact on the new factory
Despite already approving the investment plan for a third facility, Toyota is now considering an alternative product to replace the C SUV. The company had intended to introduce the Corolla Cross in India to strengthen its presence in the Rs. 20 lakh to Rs. 50 lakh price range. The cancelation of the C SUV project may affect the timeline for constructing and utilizing the new factory, as Toyota increases production of Hyryder and Grand Vitara SUVs in Bidadi.
Toyota Kirloskar's recent performance and challenges
In 2023, Toyota Kirloskar achieved its highest-ever sales and predicted a strong 2024 due to high demand for its new MPV, Innova Hycross, and continued interest in the previous generation Innova Crysta. However, recent obstacles include a disruption in global vehicle certification, temporarily halting shipments of Innova Crysta, Fortuner, and Hilux in India. The discontinuation of the 340 D project adds to the challenges faced by the Japanese marque on our shores.
