Toyota opens THIRD factory in China
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Toyota opens its THIRD factory in China, this time in Tianjin. It will have a monthly output of 200 thousand units!
TOYOTA Motor Corp officially opened the third factory of its Chinese venture yesterday, pinning high hopes on extending capacity and the new Corolla sedan in China to continue its lead against General Motors Corp worldwide.
FAW Toyota Motor Corp, the first Chinese venture formed by Japans biggest car maker and First Automotive Works Group, invested 3.6 billion yuan (US$467 million) in the new plant, located in Tianjin in northern China, with an annual capacity of 200,000 units, a statement from Toyota said.
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The new factory will lift the ventures total production capacity to 420,000 units in China.
Toyota formed a venture with Guangzhou Automobile Group Co in 2005, expecting to roll out 300,000 cars every year, including the Camry mid-to-high-class sedan as well as the upcoming Yaris compact.
The new factory kicked off operations when the first new Corolla sedan rolled off the assembly line yesterday, adding to FAW Toyotas existing production portfolio of Vios, Reiz and Crown sedans.
Analysts said the introduction of new Corolla, Toyotas most successful model with total sales exceeded 30 million units worldwide, will stir the economy car segment and is key target for Toyota in China.
The localized production of new Corollas reflect the companys growing attention on the Chinese market, said Jiang Xueqin, an analyst from Shenyin Wanguo Securities Co Ltd. It may not boost Toyotas sales in the short term, but plays a strategic role in catching up with rivals.
Toyota, which surpassed GM in terms of sales for the first quarter on the global market, is eager to expand sales in China after losing out to GM and Volkswagen over the past several years because of late market entry.
The worlds second largest auto market, with an annual growth of 25 percent last year, is expected to play an important role in its ambitions to be the worlds biggest car maker.
Toyota aims to sell 400,000 units this year in China, up from 380,000 units last year, before raising its share in the Chinese passenger car market to 10 percent in 2010 from 6.5 percent last year.
Last year, GMs sales topped 870,000 units with a 31 percent growth after setting up a complete line-up in four brands.