The deal is dependent on a proposed delisting of Inchcape Motors, which distributes Toyota and Suzuki in the Asian island state.
The London-based parent company has offered to buy out minority shareholders of Inchcape Motors for £55 million. If successful, Inchcape plc will take over the Singapore unit and delist it.
Toyota executives have not yet commented but it is recognised in the region that car manufacturers want to take a bigger interest in distribution.
“By doing this, Toyota can buy into the company with minimum fuss,” a source told the Singapore Business Times, adding that “it probably won’t happen immediately but it’s something you can’t rule out entirely”.
Toyota Motor bought the final shares in its UK subsidiary, Toyota GB, from Inchcape at the end of 2000.