Toyota boosts China capacity to rival VW’s south strategy image

To confront Volkswagen’s “South China Strategy”, Toyota now invests additional 8 billion yuan ($1.2bn) to expand the production capacity of its China plants, media reported recently.

On May 19, FAW Toyota launched a new plant, which cost a total investment of 3.6 bn yuan, in China’s southwestern Sichuan province, consequently increasing Toyota’s China capacity to 820,000 units, with Guangzhou Toyota and FAW Toyota accounting for 360,000 units and 460,000 units respectively.

The newly built Sichuan plant covers an area of 45.5 square meters, and has an initial capacity of 30,000 units that more than doubles the capacity of the previous plant. This new plant mainly produces the Prado sedan.

In addition, FAW Toyota’s Changchun plant, suspended earlier for funds frozen, will resume production in the first half of 2012, Toyota spokesperson Niu Yu said recently. It is reported that the Changchun plant, with a total investment of 3.8 bn yuan, will add 10,000 units to Toyota’s capacity in China and will mainly produce the Carolla model.

This means that Toyota’s China capacity will increase from 820,000 units to 920,000 units in two years, Niu added.

Moreover, Toyota has decided to establish a global technology center in Changshu, Jiangsu province. Later, the center will be responsible for the R&D as well as design of major models Toyota’s two joint ventures will sell in China, sources revealed.

Source: Gasgoo