Exclusive: Toyota aims to ramp up China production
Technology
Exclusive: Toyota aims to ramp up China production
TOKYO (Reuters) - Toyota aims to make at least 2.5 million vehicles a year in China by 2030, three people said, an overhaul that will see it bring its Chinese sales and production operations closer together and allow local executives a freer hand in development,
The plan, which has not been previously reported, represents a strategic pivot by the world's top selling automaker in the world's largest car market, underlining its ambition to claw back business lost to BYD and other local players in recent years.
Toyota's strategy is in contrast to that of other global automakers, including Japanese ones, that are either scaling back or pulling out of China.
It aims to boost production to as much as 3 million vehicles a year by the end of the decade, two of the people said. However, it has stopped short of establishing a formal target, the three people said. All of the people declined to be identified because the matter has not been made public.
The bigger number represents a 63% increase on the record 1.84 million vehicles it produced in China in 2022. Last year it produced 1.75 million vehicles there.
Toyota has informed some suppliers of the intended ramp-up, in the hope of reassuring parts makers of its commitment to China and thereby securing its supply chain, the people said.
In response to questions from Reuters, Toyota said in a statement: "With the intense competition in the Chinese market, we are constantly considering various initiatives". It said it would continue to work on making "ever-better cars" for the Chinese market.
