Toyota may set up a plant to make car engines in southern China for export, a senior Chinese official said, according to Reuters.

“Toyota will first make engines, with (annual) capacity of 500,000, for export to Southeast Asia,” Guangdong governor Huang Huahua told the news agency in an interview.

Reuters said the engine plan follows earlier media reports that said Toyota will make Camry sedans in Guangzhou.

Huang declined to give details, saying the Toyota engine project still requires Beijing’s approval, the report added.