Toyota to build new RM1.1 billion plant

NAGOYA: Toyota Motor plans to build another factory, costing RM1.1 billion, in Malaysia.

Toyota, which currently makes about 80,000 vehicles a year at its two factories in Malaysia, aims to increase supply in the region, the Nikkei Asian Review reports.

The new facility will be built by UMW Toyota Motor, a joint venture involving Toyota Tsusho and Malaysian conglomerate UMW Holdings. It is slated to come online as early as 2018, churning out 50,000 vehicles a year.

Toyota began production in Malaysia in 1968. Its two existing factories make vehicles for sale within the country.

The report said having another factory would allow Toyota to split up production based on vehicle type. The new facility will produce small cars, with annual capacity potentially rising to 100,000 vehicles.

New-car sales in Malaysia totalled 660,000 vehicles in 2015, ranking third in the region behind Indonesia and Thailand, according to the report.

The Nikkei report said some analysts saw Malaysia’s annual sales climbing to 800,000 as the population is growing.

It said while Toyota’s sales in Asia outside Japan fell for three straight years through fiscal 2015, which ended in March, they are expected to pick up this fiscal year.

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