Toyota to invest $450m in new Malaysia car plant

Toyota to invest $450m in new Malaysia car plant

A Malaysian man talks on his mobile phone while looking at a Toyota Vios on display at a sales showroom in Kuala Lumpur. The Japanese automaker said it will build a second factory in Malaysia as part of expansion to meet rising local demand. (AP photo)
A Malaysian man talks on his mobile phone while looking at a Toyota Vios on display at a sales showroom in Kuala Lumpur. The Japanese automaker said it will build a second factory in Malaysia as part of expansion to meet rising local demand. (AP photo)

Toyota Motor Corp said Wednesday it will build a new plant in Malaysia to meet the future domestic vehicle demand expected to increase in line with the country's economic growth.

Toyota plans to start operations at the new plant in early 2019, with its annual production capacity expected to be 50,000 units, the company said.

In the Southeast Asian country, the Japanese auto giant has been producing cars including the subcompact sedan Vios and pickup trucks under UMW Toyota Motor Sdn Bhd, a joint venture with Malaysia-based United Motor Works.

Toyota had frozen new plant construction after plunging deep into the red amid the financial crisis spawned by the collapse of Lehman Brothers Holdings Inc in 2008.

But the company has recently gone back on the front foot in its overseas production strategy, as exemplified by plans to build new plants in China in 2017 and in Mexico in 2019.

Malaysian automaker Perodua enjoys strong popularity and is market leader on the strength of its mini-car models, based on Daihatsu Motor Co platforms, which is a subsidiary of Toyota.

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