Japanese carmaker Toyota which has more than 60 production units across the world will be producing hybrid versions of its internationally famous Corolla and Levin sedans at China. The cars which are manufactured at Toyota’s unit in China will be fitted with components developed at local unit itself and will be among first range of cars with gas electric hybrid engines to be made outside Japan. The firm is facing difficulties in fulfilling demands of hybrid cars in United States and Europe due to season calamites in Japan which have upset production schedules therefore has set up this alternative unit in China. Besides Toyota, several other local and international level automakers are receiving increased demand for hybrid cars from China therefore are setting up sales offices to sell these cars in local markets as the country is increasingly feeling after effects of pollution from exhausts of fossil fuels.
Even though Toyota manufactures Prius and Camry hybrid models in China, its ancillary spares and other components are imported from Japan along with hybrid engines making it difficult for the manufacturer to make more cars as import tariffs are very high.
To avoid these issues with Corolla and Levin cars, Toyota decided to make spares, batteries, transaxles, inverters etc at China itself. According to Toyota’s spokesperson the carmaker is aiming to sell around 2 million cars every year in China itself followed by exports to nations around the world irrespective of geographical location. The carmaker which has been world leader in passenger car sales for past couple of years after defeating old rivals General Motors and Volkswagen is keen on continuing this trend for current financial year also despite setbacks suffered this year.
Besides the above two closest competitors, Toyota’s models are facing competition from local brands like Honda and Nissan followed by Hyundai which are top selling brands in China. To become China’s third largest carmaker within next couple of years Toyota has to make drastic changes in its sales activities and product range which will make a sizeable impact on Chinese psyche. To achieve its cherished goal, Toyota will be introducing around 15 new models by end of 2017 to increase its portfolio and reach in China’s local markets. Presently sales in China account for 10 percent of Toyota’s sales across the world, which it is aiming to increase by 10-15 percent on an annual basis.
During financial year of 2013 Toyota was able to sell around 917000 cars in China which showed an increase of nearly 9 percent since previous year of 2012. The previous year had been tough for Toyota as there was an ongoing diplomatic tiff between China and Toyota leading to acts of looting and arson targeted at Japanese businesses in China therefore the brand managed to secure only 5 percent of total market share in 2012. The sales of hybrid cars in China is increasing at a rapid pace accounting for sales of 20400 units in 2013 which is more than double of 7900 units in 2012. At this rate Toyota’s target of selling 2 million units in China seems quite achievable within next few years.
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I am into the auto blogs field for quite a long time. Living my passion of reviewing cars.
Tagged: Toyota Corolla
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