Toyota wants to increase production in China to 3 million cars a year by 2030

Toyota plans to nearly double car production in China from 1.75 million units in 2023 to 3 million by the end of the decade, three insiders told Reuters. To achieve this goal, the Japanese auto giant will reform sales and production departments in the country and give local executives more freedom to develop new models. This is because local specialists have a better understanding of the Chinese market, especially in the area of electrification and plug-in cars.

Sources said Toyota has already informed some partners of the planned production increase.

In a statement to Reuters, Toyota said, "Due to the fierce competition in the Chinese market, we are constantly considering various initiatives," and emphasised that it will continue to work on building "ever better cars" for China.

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The challenges Toyota faces are not unique to global automakers in China. Established brands such as Honda and Nissan have already reduced their production capacity, while Mitsubishi has exited the market entirely. Meanwhile, local carmakers such as BYD are rapidly gaining momentum, attracting buyers with modern models at competitive prices.

Toyota has already made some efforts to localise its cars. One example is the bZ3C electric coupe-crossover (pictured above), designed specifically for China. It features a lithium-iron-phosphate battery pack from BYD FinDreams, which provides a range of 500-600 kilometres. Production of the Toyota bZ3C is due to start by the end of 2024 at the FAW-Toyota joint venture.

Source: Reuters