Toyota aims to produce 2 million vehicles a year by early 2020s, which is a jump of more than 50% its current capacity.
As per a source from Toyota Motor Corp, the Japanese carmaker will boost production capacity at its plant in Guangzhou, China. This is in addition to its beefing up of production at a factory in Tianjin, by 120,000 vehicles a year.
Toyota’s overall manufacturing capacity is set to be boosted by 240,000 vehicles a year, which amounts to an increase of 20%.
Earlier this week, Reuters had reported that Toyota plans on building an additional capacity in Tianjin which will produce 10,000 100% electric battery cars and 110,000 plug-in hybrid electric cars a year.
China has said, it would remove foreign ownership caps for companies wanting to produce electric and plug-in hybrid vehicles in 2018, for makers of commercial vehicles in 2020, and the wider car market by 2022.
China has been pushing automakers to produce and sell more electric vehicles in the country.
As per a source in Toyota, the additional planned capacity augmentation in the Guangzhou plant is for electrified vehicles.
The source did not quantify how much the additional capacity would cost. As per a government website, the Tianjin expansion is likely to cost $257 million.
According to four company insiders with knowledge of the matter, the planned capacity expansions in Tianjin and Guangzhou are part of Toyota’s medium-term strategy to increase vehicle sales in China to two million vehicles a year by early 2020s – a jump of over 50%.
The plan underscores Toyota’s willingness to add manufacturing muscle capacity in China, said sources.
Car imports could also increase, they said.
In addition to boosting manufacturing capacity, Toyota also plans on significantly expanding its sales networks and focus more on electric car technologies, said sources on the condition of anonymity since they were not authorized to speak to the media.