Toyota to increase engine production in emerging markets – new plants in Indonesia and Brazil by 2016

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.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • MycarMylife on Jul 25, 2013 at 10:17 am

    Hey Toyosan , why dont come Malaysia???
    Malaysia wassurechatta ka ??
    Kuruma Toyota wa supporter ippai kara ,jannen desu .
    Where are you Toyota supporter group ?UMW ? bisu as usual ?

    Well-loved. Like or Dislike: Thumb up 133 Thumb down 6
    • Toyota shall reply:
      Thank you very much for your invitation. As much as you would like to be profiting out of your silly NAP, we want to maximise our profit too. Thanks but no thanks, please con your people and leave us alone.

      Well-loved. Like or Dislike: Thumb up 133 Thumb down 4
    • Anti CO2 on Jul 25, 2013 at 11:12 am

      Reply from Toyota Japan: Sumimasen, your G is aiming at energy efficient auto industry…

      Like or Dislike: Thumb up 0 Thumb down 8
  • Alangkah puasnya Toyota on Jul 25, 2013 at 11:05 am

    They have making the same Camry 2.0 and Vios 1.5 engine from god knows when and will continue doing so till 2050.

    Like or Dislike: Thumb up 25 Thumb down 4
    • bonbon on Jul 25, 2013 at 2:31 pm

      correction: till 3050

      Like or Dislike: Thumb up 4 Thumb down 1
    • Sam Loo on Jul 27, 2013 at 1:02 pm

      Reliable, durable, economical and a good balance between performance and endurance. This gives the car great resale value.

      For kimchis, they can have preach that they have the best power to weight ratio, best safety features (that do not work), but when owner sells, the used car fella will point them at the Hilux

      Like or Dislike: Thumb up 2 Thumb down 3
  • Abdullah on Jul 25, 2013 at 11:23 am

    Under NAP manufacturers seem to be building plant everywhere except in Malaysia.
    What sort of stupid NAP we have?

    Like or Dislike: Thumb up 41 Thumb down 0
  • tokmoh on Jul 25, 2013 at 11:48 am

    Inb4 menteri says syukurlah negara aman, we are still more advanced than Zimbabwe. Proton is cheaper than Toyota in Indonesia, janji ditepati!

    Like or Dislike: Thumb up 18 Thumb down 1
    • carguy2000 on Jul 25, 2013 at 12:11 pm

      question : does it good or bad if proton cheaper than Toyota or even KIA outside Malaysia ?

      Like or Dislike: Thumb up 2 Thumb down 1
      • tokmoh on Jul 26, 2013 at 1:32 pm

        I take it you’re indonesian, from your comment below.

        For us Malaysians, it’s bad news. It means it will always be an excuse for our politicians not to reduce car price. We will always be stuck with high car price, but low quality, low safety, inefficient outdated powertrain, etc.

        For you people, it depends on whether you find it value for money or not. But such low sales do tell me your market thinks it’s not, just a cheap substandard junk.

        Like or Dislike: Thumb up 0 Thumb down 0
        • carguy2000 on Jul 27, 2013 at 3:08 pm

          @tokmoh thanx for the reply, actually we are complicated when buying cars, thanks to taxs policy the cars over here are more expansive from what they are coming from. a decent car type price can almost equal to a small house price tag. therefore we are living in the shadow of best selling crappy cars to fight the resale value depreciation. that contribute to the lots of car accident happen thanks to avanza non exist safety feature. avanza is high in demand because it toyota and cheap, even tough it considered as an orphans/widow makers. bad handling, sardines can interior. at last proton is out of favour thanks to that. nobody taking risk buying cars with free fall depreciation trend. bmw M series after 5 years is chaver than innova ! biiiggg effort proton need to change thats, we living this sh*ts for a decades..

          Like or Dislike: Thumb up 1 Thumb down 0
  • they build plant in Indonesia, but will they have knowledge of engine tech beside building one? I highly doubt.

    Like or Dislike: Thumb up 1 Thumb down 9
    • bonbon on Jul 25, 2013 at 2:34 pm

      Toyosan: Why should we transfer our technology to Indon people? That not part of the MOU. the mou is build the factory and export.

      Like or Dislike: Thumb up 1 Thumb down 2
    • carguy2000 on Jul 25, 2013 at 8:30 pm

      you guys just keep underestimating this country with 4th largest population on earth. we are at same wave length with india, brazil in economic progress but yet we always get the insult of stupidity stereotype. Your majestic proton with suspension by lotus sticker couldn’t even reap 0.5 % of our market. selling 4 cars a week nation wide wont raise you much.. how come we like your cars if you always said how bad it is all the time.

      Like or Dislike: Thumb up 4 Thumb down 0
  • degonggok on Jul 25, 2013 at 2:13 pm

    Since the implementation of minimum salary it deter some investor. Why Indonesia? Still salary is an issue.

    Like or Dislike: Thumb up 0 Thumb down 0
    • johnny perjalanan kaki on Jul 25, 2013 at 3:36 pm

      personally i wouldnt want to be implementing a minimum salary to people who are working on a complicated equipment. it might come out looking like rojak..
      therefore i think its the whole business plan which is why it is being setup there.. the whole supply chain is the issue and it looks like Malaysia is definately on a downward spiral.. maybe even the tax benefits are more favorable especially with our LHDN these days acting like hound dogs..

      Like or Dislike: Thumb up 4 Thumb down 0
  • amirulhasan on Jul 25, 2013 at 5:27 pm

    Whats you vote is what you want and this is what rakyat 1 malaysia get at the end, become the looser the kronies doest care of their people. So whoes the borne loooser at the end.

    Like or Dislike: Thumb up 0 Thumb down 0
  • old dog on Jul 26, 2013 at 8:17 am

    Gov/Cronies all wanted 10-30% of foreign investment…now malaysia market is small as compare to other has higher population, go figure it out…why our export is minimized? now we only rely on Penang electronics, its the cronies policies of Naza, Hicom that killed all Malaysia exports and foreign investment.

    Like or Dislike: Thumb up 2 Thumb down 1
 

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