Toyota Motor Corp plans to build a factory in the Russian city of St. Petersburg, the first local production in that nation by any Japanese carmaker, company officials were quoted by Kyodo news agency as saying.
The plant would start production in 2006.
The move by the world's second-largest carmaker is aimed at opening the Russian market, where demand for automobiles is growing rapidly.
Toyota has been exporting its Corolla passenger cars and sport-utility vehicles, but with demand rising, it has decided to start local production, Kyodo said.
Company officials were not available for comment.
Initially, Toyota will have to rely on importing parts from Poland and other nations, and assembling them in Russia.
It chose St. Petersburg because the city is actively courting foreign investment with perks such as tax breaks.
News source: www.reuters.com
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Business news archive for 29 November' 2004.
Business news archive for November' 2004.
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