Toyota Motor Corp will spend 20 billion to 30 billion yen ($260-$390 million) to boost engine output capacity in China by 30 percent to 1.3 million units a year in 2013, Japan's Nikkan Kogyo industrial daily reported on Thursday.

The capacity will be added at Toyota's existing engine plants in China, operated in joint ventures with local partners FAW Group and Guangzhou Automobile Group, the paper said. The new engines will be mounted on smaller cars, with displacements of 1300cc and 1500cc, and another one to power a low-cost, compact car planned for the world's biggest market.

A Toyota spokesman said nothing had been decided.