Toyota plans to build R&D center in China in 2010

Toyota Motor Corp. plans to invest 30 to 40 billlion yen ($330-$440 million) to build a research and development center in China next year to meet the demands of the local market, the Nikkei Business Daily reported Thursday.

The new center will be built in the outskirts of Shanghai and it is part of the automaker's plan to expand its business in China, which is the world's biggest auto market, the Nikkei said.

Toyota only has a 6 percent market share in China, including vehicles produced at its 12 joint ventures with Chinese firms, the paper said.

Company officials have not commented on the new center.

The automaker plans to release its second-quarter results later on Thursday.

On Wednesday the Japanese carmaker announced it was withdrawing from Formula One Racing, citing a difficult business environment.

Agencies and Wang Yang contributed to this story