New Delhi, May 11 -- World's largest automobile maker Toyota Motor Corporation is doubling down on India with plans to set up a third plant that will add 100,000 units of annual capacity by 2029, taking its total capacity in the country to nearly 450,000 vehicles a year.

The Japanese carmaker on Monday announced that it will build the plant at Bidkin Industrial Area in Maharashtra. The facility is expected to manufacture a new sports utility vehicle (SUV) for the Indian market.

The expansion comes as carmakers remain bullish on India's growth prospects, driven by rising demand for SUVs, which now account for more than half of the country's passenger vehicle market.

Toyota joins global manufacturers such as Suzuki Motor Corporation, Hyu...