Toyota Joint-venture Engine Plant in China
Begins Production of New Four-Cylinder Engine

Toyota City, Japan, November 9, 2011―Toyota Motor Corporation (TMC) announces today that GAC Toyota Engine Co., Ltd. (GTE), a joint venture company established with Guangzhou Automobile Group Co., Ltd. (GAC), began production in October of a new four-cylinder, in-line "AR" engine at its plant in Nansha, Guangzhou City, Guangdong Province, China.

The AR is an advanced engine that brings together Toyota's state-of-the-art technologies and boasts substantially improved fuel efficiency despite its larger displacement, along with higher maximum output, cleaner emissions, and lower noise output, achieving balanced performance on an unprecedented level. The engine comes in three types: A 2.5-liter, a 2.7-liter and a 2.5-liter hybrid, with the 2.5-liter type to be used in the new Camry soon to be launched in China.

The start of AR engine production at GTE represents an additional investment of approximately 96 million U.S. dollars.

GTE was established in 2004 as a supply base for engines and engine parts in China. Production started in 2005, and cumulative production reached 1 million engines in 2009. In line with TMC's principle of producing where products will be used or sold, the decision was made to produce AR engines in China to meet the anticipated strong demand for vehicles that comply with increasingly strict fuel efficiency and emissions regulations.

TMC will continue to aim to meet the needs of a broad range of vehicle users in China based on its founding philosophy of contributing to society through the manufacture of automobiles, and, through efforts to produce ever-better cars, will work to support the development of the Chinese automobile industry by creating jobs and developing human resources.