India has entered a phase of expanding local production, and Japanese companies are also moving ahead with new plant construction and acquisitions, particularly in the southwest and south. Investment amounts and start dates vary by region, while efforts to strengthen export bases against a backdrop of domestic market growth are becoming increasingly evident.
The expansion of local production in India is accelerating, with Japanese automotive parts suppliers and packaging materials manufacturers building, expanding and acquiring local plants. For example, Toyoda Gosei is planning a new plant on a site of approximately 78,400 square metres in Maharashtra, with total floor area of approximately 29,200 square metres. The investment is expected to total approximately 5.758 billion rupees, with production scheduled to begin in early 2029 and approximately 570 jobs expected to be created by 2030. Toyota Boshoku is proceeding with construction of a new plant in Maharashtra, targeting completion in 2027 with investment of approximately 4 billion rupees.
Meanwhile, NITTAN is expanding its plant in Andhra Pradesh, doubling monthly production capacity from 1 million to 2 million units. It also plans a new plant on adjacent land and is targeting a tripling of sales and expansion of production capacity by 2030. Ball Corporation is planning a beverage-can plant in Uttar Pradesh, scheduled to begin operations in 2029. An example of an acquisition in the sanitary ware sector is Jaipur Capital's acquisition of facilities in Neemrana, with production to continue and expand under the existing brand.
The expansion of the domestic market, combined with efforts to strengthen export and regional supply chains, is intensifying competition among states and industrial parks. Competition among local governments is affecting not only costs but also the development of infrastructure requirements such as energy, water supply, logistics and skills training. The effectiveness of these investments will depend on deeper local procurement and progress in supplier development.