The Japanese car manufacturer Toyota plans to significantly increase its production in China. It does not rule out that by the end of this decade it could produce around 3 million cars a year in the world’s largest car market. If it succeeded, it would increase production on the Chinese market by more than 60% compared to the previous maximum. Reuters reported about it.
The largest car manufacturer in the world
According to two sources familiar with Toyota’s plans, the Japanese company would like to produce at least 2.5 million, possibly as many as 3 million cars a year in China by 2030. As for the higher volume, it would be 63% more than its previous record in this market. This was achieved by Toyota in 2022, at the level of 1.84 million vehicles. Last year, it produced 1.75 million cars in China.
The world’s largest carmaker’s plan for China represents a strategic U-turn. Its goal is to regain the market share that was taken from it in the past years by its Chinese competitors, especially the BYD company. Moreover, Toyota’s strategy is in sharp contrast to other car companies, including Japanese ones, which are reducing production in the Chinese market or withdrawing from it.
Toyota has already informed some suppliers about the planned increase in production. The goal is to assure them of their interest in continuing on the Chinese market and thus ensure a stable supply chain. Asked by Reuters about plans to increase production, Toyota said only that “in view of the growing competition in the Chinese market, it is constantly considering various initiatives.” It added that it will continue to work to make “its cars for the Chinese market even better.” .
Support of the chip industry
The Japanese government will propose a plan worth 10 trillion Japanese yen (60.9 billion euros) to support its chip industry. TASR informs about it based on a Reuters report.
The government in Tokyo announced its intention as countries seek to strengthen their control over chip supply chains to better withstand global shocks, including trade disputes between the US and China. The government announced that it will present the plan, including the bill on financial support for the mass production of new-generation chips, at the next session of parliament. The plan is part of the government’s comprehensive package of measures to support the economy, which is to be approved by the government cabinet at its meeting on November 22.
