March 22, 2005
Toyota to build third plant in China
Tokyo, Japan – Toyota Motor Corporation will start construction of its third plant in the northern Chinese city of Tianjin this year, as it seeks to gain a larger portion of the world’s third-largest vehicle market.
The new plant, to be built with partner Tianjin FAW Xiali Automobile Company, will be able to produce 500,000 vehicles a year by 2007. Toyota’s first Chinese plant has the capacity for 100,000 Crown sedans each year, while its second can produce 120,000 Corolla and Vios compact cars.
Currently, Toyota holds about 3 per cent of the Chinese market and hopes to increase to 10 per cent by 2010. It lags behind Volkswagen AG, the market leader with 25 per cent; General Motors Corporation with 9.3 per cent; and Honda Motor Corporation, with 5 per cent.