Reuters - Toyota Motor Corp (7203.T) will join Mitsui & Co (8031.T) and Russian automaker Sollers (SVAV.MM) to assemble passenger cars in Vladivostok, Russia, as it accelerates its expansion in emerging markets, the Nikkei business daily reported.
Toyota, the world's largest automaker, would be the first Japanese automaker to set up a production facility in Russia's far east region. It has been producing cars at a unit in St. Petersburg since 2007.
Toyota spokeswoman Kayo Miyata said the company had no comment on the matter.
Toyota will provide parts and train personnel at the Russian plant, while Mitsui and Sollers will assemble the vehicles in a 50-50 joint venture, the Nikkei reported.
Sollers' existing factory in Vladivostok will be upgraded at a cost of several billion yen (tens of millions of dollars), so that it can assemble some 30,000 Toyota vehicles annually, it said.
The factory may assemble just one model, such as a sedan or a sports utility vehicle. Mitsui will transport the Toyota-brand vehicles via the Trans-Siberian Railway and sell them throughout Russia, the business daily said.
Automobile sales in Russia have been recovering and are expected to grow 17 percent to 2.24 million units this year, the Nikkei said.
Toyota this week posted a smaller-than-expected fall in third-quarter operating profit, buoyed by stronger sales in Asia and lower costs, and raised its operating profit outlook for the full year by 45 percent. [ID:nL3E7D804S]
The titan of Japan's auto industry currently makes 43 percent of all its cars in Japan, compared with 27 to 28 percent for its main domestic rivals Nissan Motor (7201.T) and Honda Motor (7267.T).
