Toyota has pledged to invest around £7 million to develop next-generation hybrid engines in the UK.
The manufacturing giant will build 1.8-litre engines for hybrid vehicles at its Deeside plant in North Wales, which currently employs more than 500 people.
The investment includes support of more than £700,000 from the Welsh Government.
The new engine is the latest generation of Toyota’s hybrid powertrain technology and is expected to play an important role in its ambitions of increasing hybrid vehicle sales.
Last year, Toyota sold 209,000 hybrid cars in Europe – up 17% compared to the previous year.
Engine Plant Director Jim Crosbie said: “This announcement is a big vote of confidence in the high skills, quality and commitment of our workforce.”
Engines and components made at Deeside are exported across Europe, South America, South Africa and Japan.
Last month ELN spoke to car manufacturers and industry experts about challenges in the electric vehicle industry.