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Toyota to increase engine production capacity in Thailand

Published 01 March 2012

Toyota Motor (TMC) will spend JPY14bn ($171.73m) to increase its engine production capacity in Thailand to meet the growing demand in Southeast Asia.

TMC's engine production base in Thailand, Siam Toyota Manufacturing (STM) will increase its annual output capacity by 100,000 units to around 840,000 engines from 740,000 units per year from early 2014.

The 100,000-unit increase will comprise of 'ZR' engines for use in Toyota Corolla models.

In addition to supplying the domestic market, the automaker will export the engines to Vietnam and Taiwan.

The investment is expected to create about 200 new jobs.

TMC's another subsidiary, Toyota Motor Thailand, said that it expects industry-wide sales in the country to surge 38.5% to 1.1 million vehicles in this year, supported by solid domestic demand and supportive government policies.

Sales fell 0.8% to 794,081 vehicles last year due to the earthquake and tsunami that hit Japan last March and the Thai flooding.

This year, the company aims to increase its Thailand sales by 55.1% to 450,000 vehicles, reversing a fall of 11% to 290,061 last year, as it looks to grab a 40.9% share of the market this year, up from 36.5% last year.