Toyota to build new plants in China, Mexico

Japanese auto giant Toyota plans to invest a combined $1.3 billion to build new plants in China and Mexico, its first major investment in five years, reports said Friday.

The cash is aimed at boosting its production capacity by some 300,000 units a year in a bid to better compete with global rivals, the Nikkei business daily said.

The world's largest automaker expects to spend about 150 billion yen ($1.3 billion) on the new facilities, opening them in 2018 in China and 2019 in Mexico, the newspaper added.

It will be Toyota's first major investment since it began operating a new Thai plant in 2013, when it halted plant construction to focus on honing profitability, the Nikkei and Japan's public broadcaster NHK said.

The Chinese factory will be built in the city of Guangzhou, where Toyota has a joint venture with Guangzhou Automobile Group, producing the Yaris subcompact, the Nikkei said.

The plant will churn out up to 100,000 cars a year, the daily said, adding that Toyota has its eyes on the growing demand for autos among the middle class in China and wants to raise its market share there from four percent by offering more small cars.