News
Toyota Set To Increase Automobile Manufacture In China To At Least 2.5 Million Annually
According to Reuters, Toyota plans to manufacture at least 2.5 million vehicles annually in China by 2030. This major change aims to integrate its sales and manufacturing operations more closely within the country, allowing local executives greater autonomy in the development process.
The plan, which was not previously disclosed, represents a strategic shift by the world’s best-selling carmaker in the world’s biggest car market, underscoring its ambition to win back business lost to BYD and other local players in recent years.
The higher number represents a 63% increase over the record 1.84 million vehicles the Japanese automaker is expected to produce in China in 2022. It produced 1.75 million vehicles there last year.
Toyota has notified some suppliers of the intended increase, hoping to reassure parts makers of its commitment to China and secure its supply chain.
In response to Reuters questions, Toyota issued a statement: “With intense competition in the Chinese market, we are constantly considering various initiatives.” They also said they would continue to work on making “better and better cars” for the Chinese market.
The Japanese automaker aims to bring the sales and manufacturing operations of its two Chinese joint ventures closer together to improve efficiency.
It also intends to transfer as much development responsibility as possible to China-based staff who better understand local market preferences, particularly around electrified and connected car technology.
The moves signal a growing awareness within Toyota that it needs to rely more on local staff to take charge and accelerate product development in China, otherwise “it will be too late.”
Last year, Toyota announced plans to deepen cooperation between its research and development centre in Jiangsu province and its two local joint ventures.
