Toyota is planning to construct its first passenger car assembly plant in Mexico, which will produce Corolla compact sedan.
Reuters cited sources familiar with the matter as saying that the company is waiting for the approval of its board of directors to start the project.
The company is expected to invest around $1bn towards its Mexican expansion, and the production is likely to start at the plant in 2019.
According to reports, Toyota president Akio Toyoda last year asked planners to 'pause' the search of the site and review the rationale for the project.
However, if the company decides to build the plant then it would lift the 3-year expansion ban imposed by the president of the company, who blamed aggressive expansion to be the reason for quality lapses and recalls.
The publication also cited Toyota spokesman Itsuki Kurosu as saying: "We are always evaluating our production capacity in Mexico, and in North America generally, to keep it in line with local market demand, but no such decision has been made at this time."
