Mazda Motor Corp. will produce Toyota Motor Corp. compact cars at its new plant in Mexico, mainly for the North American market, the two automakers said Friday.
Under the agreement, Toyota aims to enhance its vehicle lineup in the region via the most efficient procurements, while Mazda hopes to increase production efficiency by boosting output at the plant in Guanajuato.
Mazda will produce cars with the Toyota badge based on the Mazda2 small car, known as the Demio in Japan, starting around summer 2015.
The compacts, to be produced at an annual pace of 50,000 units and sold in the United States, Canada and Mexico, will be distributed through Toyota dealers.
Mazda's Mexico plant is expected to become operational in fiscal 2013 with an annual production capacity of 140,000 units. Toyota will invest in the plant to boost the capacity needed for producing its cars there.
Toyota currently has one plant in Mexico, where it produces the Tacoma pickup truck. Mazda plans to manufacture the Mazda2 and Mazda3, known as the Axela in Japan, also for sale in North America.
Toyota has been enjoying robust sales in the North American market. Its sales volume in the region rose by 571,424 units to 1.26 million in the six-month period through September.