<p><em>Photo of the 2018-model year Yaris courtesy of Toyota.</em></p>

Toyota is investing $316 million toward a Yaris production line in Brazil in an effort to take advantage of the emerging compact-car market in the country.

A factory in Sao Paulo will house the new production line, but its output capacity will remain at the usual 100,000 units, annually, according to Nikkei. The plant will reduce the amount of Toyota Etios vehicles currently being produced there to accommodate Yaris production, which will begin by as early as July 2018.

Last June, Daihatsu Motors, a subsidiary of Toyota, said that it planned on launching compact cars in Brazil, according to Reuters.

The Etios and Corolla account for most of Toyota's sales in Brazil. The Yaris will occupy the middle price range, according to Nikkei.