TOYOTA Motor Corp, the largest carmaker in Asia, plans to build its first transmissions plant in China, betting on the country's increasing appetite for small-engine vehicles.

The carmaker announced yesterday that it will invest about US$285 million in its newly-founded Toyota Motor (Changshu) Auto Parts Co (TMCAP) to make continuously variable transmissions (CVTs) used on gasoline-engine vehicles with small displacement.

Established on Monday in Changshu, Jiangsu Province, the company is expected to create 850 jobs and is slated to start production in September 2014 with an initial capacity of 240,000 units each year.

The plant, covering an area of around 140,000 square meters, will be located about two kilometers northwest of the research and development site of Toyota Motor Engineering & Manufacturing (China) Co, which is currently under construction in Changshu.

"By producing CVTs in China, we will be able to provide high-performance, fuel-efficient cars to even more consumers in the country," said Hirokazu Yase, the president of TMCAP.

In May, the Chinese government announced it has set aside 6 billion yuan (US$0.939 billion) for subsidies of up to 3,000 yuan on each vehicle with an engine capacity of 1.6 liters or less and fuel consumption of no more than 6.3 liters per kilometers. The program is part of China's long-term strategy to save energy and reduce vehicular emissions.

Source:shanghaidaily.com