Toyota's new plant in Poland will build transmissions for the hybrid version of the Auris.

Toyota Motor Europe has announced plans to build a new plant in Europe that will produce transmissions used in hybrid cars.

European motorists, with their heavy orientation towards diesel engines, have traditionally been skeptical of hybrids. But the market is changing and a new generation of “plug-in” hybrids that can run on electricity or gasoline are slowly catching the attention of European buyers.

Going forward, Toyota Motor Europe expects its hybrid sales in Europe to increase from its current level of 31% of total sales to a target of 50% by 2020. For Poland, the Toyota investment is the second major investment by a global automaker this month. Mercedes-Benz also committed to building a new engine plant in Poland.

European auto companies, particularly German carmakers, have dismissed hybrids for years because they carry two sources of propulsion: A battery and a gasoline or diesel engine.

(Daimler building engine plant in Poland. Click Here for the story.)

The new Toyota plant will start production of a hybrid transaxle in 2018. It will be located at Toyota Motor Manufacturing Poland (TMMP) in Walbrzych, and add two petrol engines―a 1.5-liter  and a 2.0-liter at Toyota Motor Industries, Poland (TMIP) in Jelcz-Laskowice.

The new projects represent an additional investment of approximately $165 million, bringing the total investment to date of Toyota’s manufacturing operations in Poland to more than $1 billion since operations started in 2002 with the production of diesel engines sold almost exclusively in Europe where diesel has been the preferred choice for personal transportation for decades.

However, the European Union has begun to put tighter regulations on diesel emissions.

“We are very pleased to be able to bring additional petrol engine and hybrid transaxle production to the heart of Europe, here in Poland, at TMIP and TMMP, where the members of our plants have developed exceptional quality and competitiveness,” said Johan van Zyl, president and chief executive officer of Toyota Motor Europe.

(Click Here for details about Toyota and Suzuki exploring a technology partnership.)

“Toyota always seeks to increase local content and adapt to market trends, with the goal of achieving sustainable growth in mind,” he added.

The hybrid transaxle to be produced at TMMP is a key part of Toyota’s hybrid powertrain, and will be fitted to the 1.8-liter ZR engine, he said.

Van Zyl added the new plant will build the hybrid engine equipment for all Toyota Auris and Auris Touring Sports Hybrid vehicles sold in Europe, as well as the new crossover Toyota C-HR when it starts production at the end of this year. The hybrid transaxle for Auris is currently produced at Toyota Motor Corp. in Japan and imported to Europe.

In addition, some R&D functions through testing materials for production will be started at TMMP to support the hybrid transaxle project, van Zyl said.

“We are committed to further strengthen our presence in Poland,” said Eiji Takeichi, president of Toyota Motor Manufacturing Poland. “Adding the hybrid production makes our operations sustainable for the future for the benefit of our members and local community.”

(To see more about Toyota’s commitment to cars, Click Here.)

Established in 1999, Toyota Motor Manufacturing Poland started operations in April 2002 in Walbrzych, Dolnoslaskie Province, Poland. It currently produces 1.0-liter gasoline engines and transmissions for the AYGO produced in the Czech Republic and the Yaris produced in France. It also makes transmissions for vehicles with 1.0-liter to 1.8-liter engines for the Auris and Avensis produced in the UK, the Corolla and Verso made in Turkey, and the Corolla made in South Africa.

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