Japanese carmaker Tesla is planning to build an electric sedan in the country as part of a $10 billion effort to build up its manufacturing capacity, a move that could help offset an economic slowdown in the region.
Tesla’s plans to build a plant in Yokohama, where it has a large factory, comes amid a wave of auto-related investment in the United States.
The company said in February that it had invested more than $400 million in U.S. manufacturing over the past three years.
The automaker has long been working to increase its presence in the U.K. and Japan, where Tesla has invested heavily in new vehicles.
The U.k. has seen an influx of Tesla-branded vehicles and, with the company ramping up production at its Model 3 sedan, has become the first country to start offering the sedan.
The Japanese automaker also plans to invest $5 billion to build more factories in China, and to expand its supply chain in the Pacific Rim.
The automaker announced earlier this month that it will invest more than £6.4 billion ($8.5 billion) in its North American operations, and plans to open a new assembly plant in Mexico.
The company said that it plans to increase output in the Asia-Pacific region by 15 percent in the next five years and increase output from Europe by 50 percent.
Tesla, which has said it will not make cars in Europe until 2020, has faced a series of challenges in the automotive market in the past year, with sales in Europe declining by over 50 percent in 2017 and China, the world’s second-largest economy, falling by over 40 percent in 2018.
That has hurt demand for its electric cars, and the company has been looking to expand production in the Asian region.