Toyota said the funds will enable the facility at Burnaston to employ a new global manufacturing system.
The company has been making cars in the UK since 1992 and this investment is bound to shore up confidence that big overseas manufacturers are not deterred by the UK’s departure from the European Union or single market.
However, the company has stressed its desire to see the right conditions in place to ensure it can prosper in the UK.
John van Zyl, president and chief executive, Toyota Motor Europe, said: “Our investment demonstrates that, as a company, we are doing all we can to raise the competitiveness of our Burnaston plant in Derbyshire.
“Continued tariff-and-barrier free market access between the UK and Europe that is predictable and uncomplicated will be vital for future success.”
Toyota said the investment will improve plant competitiveness and promote UK supply chain efficiencies.
Together with its engine plant at Deeside in North Wales it employs about 3,400 workers.
The Burnaston plant produced 180,000 Auris and Avensis models last year. Most are exported.
The Government is providing £21.3m in funding for training, research and development and enhancements of the plant’s environmental performance.