Hino Motors, Toyota Motor's commercial vehicle subsidiary, announced plans to spend JPY1.89bn (US$16.8m) to build a new truck assembly plant in Russia.

The new factory, to be built near Khimki just north of Moscow, is scheduled to be completed in the second quarter of 2018 with an initial capacity of 2,000 heavy duty trucks per year.

Hino said it plans to add medium duty trucks to the plant's output by 2019 and light duty trucks by 2020.

The company entered Russia in 2008 and has sold 12,000 vehicles since then.

It expects the Russian commercial vehicle market to expand rapidly in the future and the new plant is expected to underpin the brand's competitiveness in this market.

At the end of last month, Hino announced plans to relocate its US truck production operations in to a larger site also in West Virginia, where it plans to spend US$100m by 2020.