Toyota Motor Corporation plans to invest over US$ 280 million over the next few years to upgrade and expand its production operations in Vietnam, according to local reports.

The Japanese automaker’s local subsidiary, Toyota Motor Vietnam Company Ltd, has received approval from the Phú Thọ provincial authorities to build new facilities at its production hub in Phúc Yên. Toyota currently has a production capacity of 52,000 vehicles per year in Phúc Yên, according to the latest project documents, making models such as the Vios, Fortuner, Avanza, and Veloz.

Toyota plans to add hybrid-electric vehicles (HEVs) to its local line-up, while no specific mention of battery electric vehicles (BEVs) despite surging local demand in the last few years. The company currently sells hybrid vehicles imported mainly from Thailand, Indonesia, and Japan.

The new investment will mostly be focused on the installation of a new paintshop and stamping plant, with construction scheduled to begin in May 2027 and be completed in 2029, according to local sources. More advanced production equipment will be introduced at the plant, including higher levels of automation, which are expected to expand production capacity, improve product quality and energy efficiency, and enhance the plant’s overall competitiveness.

Toyota’s overall production capacity in Vietnam is expected to be expanded as a result of the new investment. The company sold over 72,000 vehicles in the country last year, including locally-assembled and imported models.