Toyota is setting up its first research and development center in India through its local unit, people familiar with the matter said, signaling the market’s growing importance.

The new R&D facility will begin operations with a team of about 200 people in Bengaluru, near Toyota Kirloskar Motor’s existing factory in Bidadi, one of the people said, asking not to be identified because the details are private. The team will likely be scaled up to around 1,000 engineers by 2027, the person said.

Representatives for Toyota Kirloskar Motor declined to comment. Toyota didn’t immediately respond to a request for comment.