TOKYO -- Toyota Motor Corp. plans to boost capital spending by more than 10 percent during the current business year to March 2005 due to rapid growth in overseas sales, the Nihon Keizai newspaper reported on Friday.
The financial daily said the world's second-largest car maker would spend a record 1.1 trillion yen ($10.24 billion) on a consolidated basis, up from an initially planned 990 billion yen.
A Toyota spokesman said he could not comment on the report until Nov. 1, when the company will release its first-half earnings report as well as capital investment plans.
The paper said it would be the first time in six years for Toyota to invest over 1 trillion yen in capital projects. It would also be twice the amount planned by Nissan Motor Co. Ltd., Japan's second-biggest auto maker.
More than half of the spending would be used to increase production capacity in domestic plants to keep up with rapid growth in global sales, which are expected to reach 7.2 million units this year after rising about 10 percent since the 2001-2002 fiscal year, the paper said.
Toyota will expand assembly lines at its two domestic plants and will use 30 billion yen to increase production of key components including automatic transmissions at its plant in Hokkaido, northern Japan, the paper added.
Including group companies such as parts supplier Denso Corp., capital investment will top 1.7 trillion yen, it said.