Toyota expanding NEV manufacturing in China
Toyota have announced plans to significantly increase production capacities in their Chinese factories. In future, they plan to manufacture more plug-in hybrid as well as electric vehicles there. Their imports will also be expanded.
Specifically, Toyota plans to increase production capacities for electric vehicles in their factories in Tianjin and Guangzhou. The first location will be upgraded to produce up to 10,000 fully electric and 110,000 hybrid vehicles on an annual basis. The cost for the expansion will run Toyota about 257 million dollars.
In Guangzhou, production will also be increased, specifically in the areas of electrified vehicles. Further details have not been announced, however and statements regarding the expansion were made by unnamed sources.
The expansion of production capacities is in response to the Chinese government restrictions, namely the EV sales quota. In order to meet the requirement starting in 2019, Toyota is taking steps in their short-term planning as well. It was announced in May, that they would begin the sale of the ix4 from their joint venture partner GAC. In other words, Toyota will be selling other manufacturer’s electric vehicles in their showroom, using the GAC brand.
The sales measure exemplifies just how much pressure the Chinese government is putting on vehicle manufacturers. It also demonstrates that Toyota needs to gain traction on the Chinese market. They presented the hybrid versions of the Corolla and Levin at the Beijing Motor Show, which will be launched in China in 2019. The first fully-electric Toyota will be the electric version of the C-HR, which will be released the following year.
In conclusion, the agreement is a gain for GAC, whose function in the 2004 founded joint venture had thus far mostly been focused on adapting Toyota models for the Chinese market.
Update 27.08.2018: The expansion of production capacities in China has been further expanded than we initially thought. Next to the expansion of said factories in Tianjin and Guangzhou, a new factory will be constructed in Guangzhou. It will manufacture 200,000 NEVs annually and assemble both EVs and hybrids, alongside SUVs. Specifically, Toyota plans to increase their production capacity in China by 35% in the next three years so that they may make a total of 1.7 million vehicles per year there.
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