Toyota announced it will invest $508 million to double production of diesel engines at its facility in Thailand.
Toyota said that due to growing demand in emerging markets, it took the decision to invest $508 million and double production of diesel engines from 290, 000 to 610, 000 in 2015. The plant in Thailand has a total capacity of 900,000 diesel and gasoline engines.
Toyota’s engine subsidiary in Thailand, Siam Toyota Manufacturing, said that the diesel engines are used in Innovative International Multi-purpose Vehicle Project series vehicles and that this investment will add 450 new jobs. The engines manufactured at STM will mainly supply vehicle parts in Thailand, but the automaker is also considering exports to emerging markets, as diesel engines, which are 20%-30% more fuel-efficient compared with gasoline engines, have became very popular in India and several other markets.
In January Toyota announced its investment of $257 million in Thailand, showing its confidence in the Southeast Asian car sector hub despite heavy losses caused by the floods. The Japanese carmaker is building a manufacturing plant at Gateway industrial park and restarting a production line at its Thai Auto Works (TAW) plant, where it produced the Fortuners. Toyota said that combined production capacity of the two new Toyota plants would be 88,000 units, expecting the Gateway plant in Chachoengsao province to be ready for production in July 2013.