Toyota plans to boost engine production in Thailand, to meet the growing demand in Southeast Asia.
The company will raise annual capacity at its Siam Toyota Manufacturing Co. subsidiary by 100, 000 engines, or 14%, to 840,000 at a cost of ¥14 billion, creating 200 new jobs. At the end of January the subsidiary had 3,000 workers. Toyota will increase the production of “ZR” engines for the Corolla series models in 2014, supplying the engines to the Thai market and also exporting them to Vietnam and Taiwan.
Another Toyota local subsidiary, Toyota Motor Thailand Co., expects industry-wide sales in the country to surge 38.5% to 1.1 million vehicles in 2012, supported by solid domestic demand and supportive government policies. In 2011, sales fell 0.8% to 794,081 vehicles due to the earthquake and tsunami that hit Japan.
Even if the 2011 natural disasters disrupted many Japanese car makers’ production, Thailand is still seen as a global hub where many competitive suppliers operate. That is why Toyota hopes to increase Thailand sales by 55.1% to 450,000 vehicles, reversing a fall of 11% to 290,061 last year, and reaching 40.9% share of the market this year, up from 36.5% last year.