Japanese automaker Toyota is planning to invest about $230m to build a new car engine manufacturing plant in Indonesia, as part of its strategy to expand powertrain production in emerging markets by 20%.
The new plant will be used to produce 1.2 to 1.5L engines for compact vehicle models, which replace the current production of 2.0L and above engines that are being assembled for deploying in its minivans and SUVs.
Upon expected commencement of operations in 2016, the new facility would be capable of producing 216,000 powertrain units per year.
Currently, the Japanese automaker produces 195,000 engines per year for its International Multi-purpose Vehicle (IMV) series at Sunter plant in North Jakarta.
Toyota is also planning to open its first engine plant in Brazil by 2016, upon which, the localised engine production capacity in emerging markets would reach around 2.6 million units per year.
As part of its plans to develop Indonesia as its export base, Toyota opened a new $340m vehicle manufacturing plant in Karawang in March 2013, which has an annual production capacity of 70,000 units.
