Toy­ota to build new fac­to­ries in main­land China, Mex­ico: me­dia

The China Post - - BUSINESS -

Ja­panese auto gi­ant Toy­ota plans to in­vest a com­bined US$ 1.3 bil­lion to build new plants in China and Mex­ico, its first ma­jor in­vest­ment in five years, re­ports said Fri­day.

The cash is aimed at boost­ing its pro­duc­tion ca­pac­ity by some 300,000 units a year in a bid to bet­ter com­pete with global ri­vals, the Nikkei busi­ness daily said.

The world’s largest au­tomaker ex­pects to spend about 150 bil- lion yen ( US$1.3 bil­lion) on the new fa­cil­i­ties, open­ing them in 2018 in China and 2019 in Mex­ico, the news­pa­per added.

It will be Toy­ota’s first ma­jor in­vest­ment since it be­gan op­er­at­ing a new Thai plant in 2013, when it halted plant con­struc­tion to fo­cus on hon­ing prof­itabil­ity, the Nikkei and Ja­pan’s public broad­caster NHK said.

The Chi­nese fac­tory will be built in the city of Guangzhou, where Toy­ota has a joint ven­ture with Guangzhou Au­to­mo­bile Group, pro­duc­ing the Yaris sub­com­pact, the Nikkei said.

The plant will churn out up to 100,000 cars a year, the daily said, adding that Toy­ota has its eyes on the grow­ing de­mand for au­tos among the mid­dle class in China and wants to raise its mar­ket share there from four per­cent by of­fer­ing more small cars.

In Mex­ico, Toy­ota’s fac­tory in the state of Gua­na­ju­ato will have a max­i­mum out­put ca­pac­ity of 200,000 cars a year, the Nikkei said.

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