Japanese automaker Toyota will begin manufacturing vehicles in Malaysia, with the first model to be rolled out in about 18 months, reports said today.

"We are investing in localisation efforts and will start with one model," UMW Toyota Motor managing director David Chen told the Star daily, declining to disclose which model had been selected.

Chen said Toyota in Malaysia was lagging behind its operations in Thailand where it makes passenger cars and pick-up trucks for export, and Indonesia where it producers people-movers and sports utility vehicles for export.

Local content

With 20,000 vehicles sold in Malaysia in the first quarter of 2006 and a market share of 18 percent, it was now more economical to manufacture the vehicles locally rather than assemble completely knocked-down parts, he said.

The Malaysian-made vehicles would have a local content of more than 60 percent, he told The Edge financial daily.

UMW Toyota currently assembles several Toyota models including the Vios, Avanza and Innova in Malaysia.