Toyota to spend USD700 mil. to boost engine output in emerging markets by 20%

Plans to nurture the expertise of local auto parts manufacturers to produce engines.

Toyota will spend JPY70 billion (USD700 million) to boost its engine output in emerging markets by 20%, reports the Nikkei financial daily. The automaker will set up a new engine plant in Indonesia by 2016 to make 1.2- to 1.5-litre engines for compact vehicles, with an annual capacity of 250,000 units. This will be in addition to 2.0-litre and larger engines the company already produces in the country for use in sport utility vehicles (SUVs) and minivans. In Brazil, Toyota plans to launch its first engine plant by 2016. Engines produced at the facility, with an annual capacity of 70,000 units, will be used in the Etios compact vehicle, local production of which began last year. In Thailand, the company will add more than 70,000 units to its earlier plan of expanding annual engine output capacity in the country to 1.29 million units. Toyota plans to nurture the expertise of local auto parts manufacturers to produce engines in these markets.