TOKYO, Oct 6: Japanese automaker Mitsubishi Motors plans to expand production capacity in Japan by 10 per cent to meet strong demand for exports, a report said on Saturday.

It will also improve output efficiency by moving some production overseas, the Nikkei business daily said, without citing sources.

Currently, Mitsubishi’s three assembly plants can produce 840,000 vehicles annually.

But they are running flat-out to meet a fiscal 2007 goal of 866,000 units, which would represent a 15 per cent increase from a year earlier, the Nikkei said.

By setting up new welding lines and transferring production to Europe, the company hopes to consolidate some of the remaining production lines to improve efficiency, the Nikkei said.—AFP