Toyota Motor Corp. is considering building a new factory in Tianjin, China, to catch up with rivals from US, Europe and South Korea, company officials said today.
While the envisioned plant will likely increase the annual production capacity of the leading Japanese automaker in China to 1 million vehicles, the construction of a new plant is subject to permission from the Chinese government.
The Japanese automaker already operates four factories in Tianjin, Changchun, Chengdu and Guangzhou, and has a total capacity of 920,000 vehicles / year.
However, the new plant may be a part of Toyota’s plan to introduce a new brand to focus in new energy vehicles in China.
The carmaker has launched the ‘Yundong’ plan, in March, to design and produce hybrid vehicles with its JV partners in China, thus enhancing their skill in the new energy vehicle technology field.
Toyota is also planning to launch advanced battery and electric motor technology in the country.
Sales in China by Japan’s Toyota Motor and its two local joint venture partners doubled in May from a year earlier to about 78,700 vehicles.
For the first five months of this year, the Japanese automaker sold a total of about 372,000 vehicles, a 26.1 per cent increase from the same period last year.