Parts maker Aisin Seiki, a unit of Toyota Motor, will invest one billion yen ($US8.2 million) to expand manual gearbox production at its Chinese subsidiary Tangshan Aisin Gear Co (TAGC), according to the Shikoku Shimbun.

The report said Aisin Seiki aims to boost annual output to 190,000 units from 140,000 units in 2001. The move follows an increasing demand for gearboxes installed in Toyota’s first Chinese-made car, the VIOS, introduced last month.

TAGC expects sales revenue of six billion yen in 2003, compared to 4.3 bn yen in 2001.