CXN reports that Toyota has received official approval to start building its second car plant in Tianjin.

The CXN report said that Toyota plans to build its factory in the Tianjin Economic-Technological-Development area to make cars with First Automotive Industry (Group) Co.

A Toyota spokesman told the newswire that investment and production details would be decided this year or early next year.

In August, Toyota announced that it had agreed to invest about $US2.5 billion with China's First Automotive Industry (Group) Company (FAI) to build up to 400,000 cars a year.

The new factory in Tianjin will start making 50,000 mid-sized luxury sedans a year by 2005. Toyota has just begun the manufacture in Tianjin of the Vios at a rate of around 30,000 units per annum.

Additionally, Toyota also plans to make 100,000 minicars a year in Tianjin with Tianjin Auto subsidiary Huali.