The French plant, based in Valenciennes, will increase its production capacity of 240 000 units per year to a maximum capacity of 270 000 in anticipation of the huge demand for the next-generation Yaris.
Toyota will be investing a further €110m in the Valenciennes plant, which is located in the north of France and has been manufacturing the Yaris since January 2001.
To meet the increased production capacity a further 1 000 employees will be added to TMMF's 2 800-strong work force.
Roger Houghton, Public Affairs Manager at Toyota SA says: "Due to the expected heavy demand for the latest French-built Yaris in Europe, a decision was taken to import Japanese-built models for the South African market."
But Toyota SA executives are reluctant to reveal prices and models.
However, there is a wide range to choose from, starting with a 1-litre version powered by an advanced Daihatsu-sourced 1-litre three cylinder through 1.3-litre and 1.6-litre four cylinders, topped off by a 1.6-litre fitted with a variable transmission automatic.