Toyota to build a new car factory in Malaysia

Toyota to build a new car factory in Malaysia image

The Japanese automaker said that, due to a growing demand in Malaysia, it has decided to build a new plant there, scheduled to start making cars in 2019.

The Southeast Asian markets are growing at a fast pace and automakers have to quickly adapt their production to meet demand. And Malaysia is one of those countries where the passenger car segment is on an upward trend, forcing Toyota to start a reorganization process of its local operations through its subsidiary, Assembly Services Sdn. Bhd. The world’s biggest automaker said the current facility would eventually stop making cars by early 2019, using that site instead as a dedicated commercial vehicle plant, with the new factory to focus only on manufacture passenger vehicles. Toyota is investing about 49 billion yen (450 million dollars) in the new factory, which will have an annual production capacity of 50,000 units. The facility is set to be built in Klang, in the state of Selangor, and is scheduled to start making cars in 2019.

“This plant is another of our efforts to create new, competitive plants, following the decisions made last year to create a new plant in Mexico and a new line in China, and the opening of two new engine plants this year in Indonesia and Brazil,” Toyota Managing Officer Tatsuro Takami said in statement. The existing Malaysian plant started to produce Corona’s and Corolla’s Complete Knock Down in 1968 and by splitting the output of commercial and passenger vehicles between this line and the new one, processes and distribution should be optimized, Toyota said.

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