Toyota’s Bold China Strategy, Targeting 2.5 Million Vehicles Annually by 2030 Amid Intensified Competition

Key Points

  • Toyota plans to produce 2.5 to 3 million vehicles annually in China by 2030, up from 1.75 million last year.
  • Toyota will grant more autonomy to China-based teams to align development with local preferences, especially for EVs.
  • Domestic EV brands like Hongqi and Aion currently outsell Toyota’s models, emphasizing the need for competitive local offerings.
  • Toyota’s operating income in China decreased during the first half of the fiscal year due to intense competition and higher marketing costs.

Toyota is setting ambitious goals for its future in China, aiming to produce at least 2.5 million vehicles annually by 2030 in the world’s largest auto market. The Japanese automaker’s plans reveal a strategic overhaul to counter competitors like BYD, who have dominated the local electric vehicle (EV) market in recent years. According to insiders, Toyota’s approach includes closer integration between its sales and production arms in China and giving its local executives more autonomy, allowing them better to tailor vehicle designs and technology for the Chinese market.

Toyota’s production ambitions in China could rise to 3 million vehicles per year by the decade’s end, representing a significant increase from its record 1.84 million units produced in 2022. While the company has not publicly established this target, it has already informed suppliers of its intended production boost, aiming to reassure them and secure its supply chain amid fierce market competition. Last year, Toyota’s production slightly declined to 1.75 million vehicles, making the upcoming expansion even more vital for its market share in China.

A key element of Toyota’s new strategy is delegating decision-making power to China-based teams, especially in EV and connected car technology. Toyota’s two joint ventures in China will work more closely with the company’s R&D center in Jiangsu province to streamline operations and better understand Chinese consumer preferences. This move addresses a significant challenge Toyota and other legacy automakers faced: the need for faster, localized product development to compete with the rapid advancements of domestic EV makers.

Toyota’s new approach also includes consolidating production for each car model at a single joint venture, allowing the models to be sold through both joint ventures’ dealerships. Toyota’s joint ventures produce “twinned vehicles” with similar models sold under different brands and designs. By focusing on production and incorporating local partners’ expertise, Toyota hopes to produce more competitive models that resonate better with Chinese consumers.

Chinese EV brands such as Hongqi and Aion have outpaced Toyota’s models, which have developed through local partnerships, highlighting Toyota’s struggle to keep pace with China’s rapid EV growth. Japanese automakers like Mitsubishi have even exited the market, while Honda and Nissan have scaled back production. Toyota’s operating income in China also fell during the first half of the fiscal year due to high marketing costs amid tough price competition.

With the latest push to localize development and streamline production, Toyota is positioning itself to better compete in the Chinese market, where domestic automakers continue to set the pace in EV and technology innovation.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

Read More

We are highly passionate and dedicated to delivering our readers the latest information and insights into technology innovation and trends. Our mission is to help understand industry professionals and enthusiasts about the complexities of technology and the latest advancements.

Visits Count

Last month: 86272
This month: 2799 🟢Running

Company

Contact Us

Follow Us

TECHNOLOGY ARTICLES

SERVICES

COMPANY

CONTACT US

FOLLOW US