It has been revealed that Toyota Motor Corporation has informed some parts manufacturers about its policy to aim for a production scale of more than 2.5 million vehicles in China by 2030. The photo was taken on April 25, 2024 at Exhibition Beijing International Auto (Reuters/Tingshu Wang)
According to two people involved, Toyota expects production in 2030 to be between 2.5 and 3 million units. Production is to increase by more than 600,000 units from the peak of 1.84 million units produced in 2022, and Toyota is moving forward by cultivating vehicle development for the Chinese market to meet the needs of a market where are intelligent and electronic technologies. advance suitable goods. The production and sales networks of the two joint venture companies will also be reviewed to streamline the entire business.
Toyota decided last July to deepen cooperation between its research and development base in Jiangsu province and the research bases of two joint venture companies, and will further increase car development led by Chinese workers, according to two people involved. “Japanese companies have not caught up with the trends in China. If we don’t accelerate product development by leaving it up to the Chinese people, it will be too late,” said one of the people involved, and she is developing products to meet the needs of the Chinese people.
Currently, cars developed independently by Toyota’s joint venture partners, such as FAW’s luxury car brand “Hongqi” and Guangzhou’s EV brand “AION”, are superior to models made by FAW’s joint venture companies. Toyota and GAC Toyota. Toyota will also introduce the knowledge of the special models of these Chinese manufacturers.
Vice President Yoichi Miyazaki said at a financial results conference on the 6th, “Instead of being Japanese making cars for Chinese people, we would like to go one step further towards having Chinese making cars for the Chinese people.” said.
Production and sales systems will also be reviewed. Currently, the two joint ventures produce the same vehicles and sell them as sister vehicles with different designs and names, but according to two people involved, each type of vehicle will be consolidated under one of the joint ventures. Models produced by the two joint ventures will be available for purchase at an affiliated retailer.
In response to an interview with Reuters, a Toyota spokesperson said, “The Chinese market is very competitive, and we are always considering different initiatives.” The company said it will develop and launch vehicles which enhances customer satisfaction.
Toyota sales in China peaked at 1,944,010 units in 2021, and continued to decline to 1,940,590 units in 2022 and 1,907,587 units in 2023. The cumulative total was for the period between January and October this year around 1,412,900 units, a decrease of 9.3% from the same period last year.
In addition to the overall economic downturn due to the coronavirus pandemic, the car market has rapidly shifted to electric vehicles, and while local manufacturers that provide EVs at low prices have expanded their market share, the competitiveness of Japanese manufacturers, which are heavily dependent on gasoline. – power vehicles, decreased.
One of the people involved explained that the production scale of 2.5 million to 3 million units in 2030 is “not a target, but a measure to make it easier for (parts manufacturers) business plans to design. ” “Supplier companies have been hit hard by the (Japanese) decline in sales in China, and some have begun to consolidate or reorganize their bases. Suppliers are also becoming suspicious.”
(Editing by Maki Shiraki: Nobuhiro Kubo, David Dolan)
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2024-11-09 09:43:00
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