Toyota may make more Lexus SUVs in Canada,

Grappling with a strong yen that makes it more expensive to export goods from Japan, Toyota has gradually been transferring some of its domestic production abroad, saying in principle it aims to make products near markets in which they are sold.

But Japan’s biggest auto maker has also repeatedly vowed to safeguard production of some three million vehicles a year in its home market, roughly triple the equivalent output at rivals Nissan Motor and Honda Motor.

Toyota plans to boost output capacity at its plant in Canada in early 2014, and is considering transferring production of about 30,000 RX SUVs to Canada from its Miyata factory in southern Japan, public broadcaster NHK reported earlier on Tuesday.

Toyota produced about 81,000 RX SUVs at Miyata in 2011.

The total number of vehicles produced at the Miyata plant would likely be unchanged, as other models would be made instead of the RX, said the source, who declined to be named because he was not authorized to speak about the matter.

Toyota is set to make an announcement on the matter soon, the source said.

Earlier this month, the Miyata plant started production of the Lexus ES 2013 model, which will be exported largely to the United States and China, but will not be sold in Japan.