Mazda Motor and Sumitomo Corp will jointly spend JPY30 to 40bn (US$355-$475m) to build a car plant in Mexico, which will supply compact cars to Latin America, the Nikkei business daily reported on Tuesday.

Mazda will hold a majority stake in the joint venture which will operate the plant, while the manufacturing facility will start rolling out compact cars in 2013 at a pace of 100,000 units a year, the Nikkei said.