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JAPAN: Toyota to boost China engine capacity 30% - reports

By Graeme Roberts | 28 July 2011

Toyota Motor Corporation has declined to comment on a Japanese media report it would spend JPY20bn to JPY30bn (US$260m-$390m) to boost engine manufacturing capacity in China 30% to 1.3m units a year in 2013.

Japan's Nikkan Kogyo industrial daily said the capacity would be added at Toyota's existing engine plants in China, operated in joint ventures with FAW Group and Guangzhou Automobile Group, Reuters reported.

New 1.3- and 1.5-litre engines would be installed in smaller cars and a third motor would power a new low-cost, compact car planned for China, the paper said.

Toyota has developed its Etios line as an 'emerging markets' car and it is already made and on sale in India. Brazilian production starts in a new plant late in 2012.

A Toyota spokesman said nothing had been decided.