Japanese car making giant Toyota says it will invest $US90 million ($A84.31 million) over the next three years to expand its factory in the northwestern Russian city of Saint Petersburg.
The new production facilities, including production lines to make body parts and plastic car parts, are due for launch in 2014, the company says.
Toyota says the decision is due to "expected stable growth of the Russian market."
Toyota opened its Saint Petersburg factory in 2007 and now employs about 1300 people.
The company has already invested about $US225 million in the factory, producing just over 14,000 Camry sedans last year.
In 2011, sales of new cars and light commercial vehicles in Russia rose by 39 per cent compared with 2010, according to the Association of European Businesses.