As part of the expansion of its India lineup, Toyota had announced the development of a new C-segment mid-size SUV for the Indian market some time ago. This SUV was supposed to bridge the gap between the Urban Cruiser Hyryder and the flagship Fortuner. However, recent developments suggest that the Japanese carmaker has opted out of this project.
According to a recent report by Autocar India, Toyota Kirloskar, the Indian arm of Toyota, has scrapped the C-segment SUV project. The reason cited by the company is that the project did not meet required technical commercial viability. Global shifts in demand also played a critical role in this decision.
Toyota mid-size C SUV alternatives
Internally codenamed 340 D, production for this new mid-size SUV was supposed to start by June 2026 with a potential annual volume of 75,000 units. Around 50% of this SUV produced in India was expected to be exported to overseas markets. Toyota will now eye for new alternatives of this SUV in the coming six to eight months. The company is reportedly looking at the based on the global Corolla platformÂ

This project was part of Toyota’s expansion in India which included ramping up its local manufacturing capacity. Last year, the carmaker announced that it was setting up a third production facility in the country which involved an investment of USD 400 million (about Rs 3,320 crore). Toyota’s current plants in Bidadi near Bengaluru, Karnataka are presently operating at over 90 percent capacity.
The new plant will have an annual production capacity of 1,00,000 units, increasing the brand’s overall capacity to 4,10,000 units. With the C-segment SUV project shelved, there is no word on the development of the third facility in the country. It is likely that construction and utilisation of the factory may be pushed ahead even as Toyota looks to ramp up production for Hyryder and its cousin Maruti Grand Vitara SUV in Bidadi.
The new plant will have an annual production capacity of 1,00,000 units, increasing the brand’s overall capacity to 4,10,000 units. With the C-segment SUV project shelved, there is no word on the development of the third facility in the country. It is likely that construction and utilisation of the factory may be pushed ahead even as Toyota looks to ramp up production for Hyryder and its cousin Maruti Grand Vitara SUV in Bidadi.
Source: Autocar India