toyota engine

Toyota has announced that it will be expanding engine production in emerging markets by nearly 20%, with 70 billion yen set to be pumped into the expansion progamme. When in place, the localised engine production capacity in these markets will be around 2.6 million units a year, an increase of about 400,000 units from that currently.

According to the Nikkei, the locally-assembled engines will account for around 80% of the powertrain volume going into vehicles built in these markets. Of the sum, 23 billion yen has been earmarked for the production of a new engine plant in Indonesia. The new factory, which will be operational in the first half of 2016, will have an annual production capacity of 216,000 engines.

Located near the Toyota Motor Manufacturing Indonesia assembly plants in Karawang, the factory will build 1.2 to 1.5 litre engines for compact vehicle models. These will supplant current production of engines of 2.0 litre capacity and above that the automaker already assembles there for use in its minivans and SUVs.

The company will also open its first engine plant in Brazil by 2016. The factory's annual capacity of 70,000 engines will find their way into the Etios, which began local production in the country last year. As for Thailand, engine production capacity is set to be increased by 70,000 units to 1.29 million units annually.

Toyota said it plans to retain a level of domestic output in Japan, focusing on engines with a high added value such as those for hybrids, the report added.