Denso has announced it will begin production of engine control units (ECUs) in Brazil in September.

It will be the first company to make ECUs for cars in South America, the Nikkei said. It will supply Toyota plants in Brazil.

Denso already has an ECU facility in the northern Brazilian city of Manaus which it built at a cost of JPY400m.

In addition to Toyota, Denso aims to supply ECUs made in Brazil to other Japanese automakers, including Nissan which plans to bring a new plant online in 2014.

Denso hopes to nearly double its sales in South America to US$1.4bn by 2015, taking advantage of automakers' plans to increase their parts procurement in Brazil, the Nikkei noted.