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According to Reuters, Toyota has set an ambitious production target of at least 2.5 million vehicles for the Chinese market by 2030. This new initiative is expected to help the company gain a stronger foothold in the populous country and boost its manufacturing and sales operations.
In 2022, Toyota produced approximately 1.84 million vehicles in China, but this number dipped to 1.75 million the following year. To reassure anxious parts suppliers, the automaker has also communicated its production enhancement plans.
For several months, suppliers have expressed concerns about Toyota’s declining sales and performance. The new strategy marks a shift in the Japanese automaker’s sales tactics as it aims to reclaim market share lost to BYD in recent years.
This decision is considered unusual and bold, as most international automakers are downsizing their operations in China or even planning to exit the country altogether.
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2024 Toyota Camry HEV. Photo: Phúc Dương |
“We are striving to create better products to compete in the Chinese market,” a Toyota spokesperson told Reuters.
An anonymous Toyota representative also spoke about the company’s plans to redistribute its sales activities in China, giving local employees more prominent roles within the organization.
This move indicates that Toyota has begun to recognize the importance of local employees in its product development strategy for the Chinese market. In recent years, traditional automakers like Toyota have been outpaced by Chinese manufacturers in the production of electric vehicles.
Chinese companies have successively launched affordable, technologically advanced, and stylish electric vehicles, outcompeting Toyota and Honda’s outdated gasoline-powered models. In its latest financial report, Toyota admitted that its revenue and profits had declined in the first nine months due to increased marketing costs and fierce competition from Chinese automakers.
Mitsubishi has also announced its withdrawal from the Chinese market, while Nissan Motor is downsizing its production in the country.
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