China: Toyota to boost engine capacity 30 percent by 2013 image

Toyota will boost its engine capacity by 30 percent to 1.3 million engines a-year in 2013.

This will cost the automaker 20 billion to 30 billion yen ($260-$390 million) Japan’s Nikkan Kogyo daily reported on Thursday.

Last year the automaker together with its Chinese partner FAW Group started operation of their joint venture’s new plant in southwestern Sichuan province, boosting the Japanese auto giant’s production capacity in China to 820,000 vehicles.

The new power plants will be installed on smaller vehicles, with displacements of 1.3 and 1.5-liter, and another one to power a low-cost, compact car planned for the world’s biggest market.

Last month the automaker said its sales in China fell 2.4 percent on the year to about 59,500 units in June, down for the third straight month but a sharp improvement from the 35.0% drop in May.

Sales remain weak due to the devastating earthquake and subsequent Tsunami that rocked Japan in the fist half of the year and resulted in parts being in short supply around the world.