Toyota Ready To Increase Production In China To 2.5 Million Units Per Year By 2030

Toyota bZ3 for the Chinese market. (Doc. Global Toyota)

JAKARTA - A Japanese automotive manufacturer Toyota plans to increase production capacity in China to at least 2.5 million vehicles per year by 2030. This ambitious move demonstrates Toyota's commitment to strengthening its presence in the world's largest automotive market, although the global trend shows many other manufacturers are choosing to reduce its operations in the country.

Citing a Reuters report on Monday, November 11, Toyota has communicated this strategic plan to a number of suppliers, hoping to reassure them of the long-term commitment of the brand in China. Toyota is targeting annual production of up to 3 million vehicles by the end of the decade, marking a significant shift in their strategy.

"With the intense competition in the Chinese market, we continue to evaluate various initiatives to remain relevant," Toyota said in a statement.

The plan also includes efforts to bring sales and production operations closer to the two Toyota joint ventures in China, in order to increase efficiency. According to two sources who declined to be named, Toyota wants to leverage local staff expertise to support the acceleration of product development, especially in the fast-growing electric vehicle sector.

This change in approach reflects Toyota's awareness of the importance of relying on local workers who better understand the dynamics and preferences of the Chinese market. Last year, Toyota announced a closer cooperation between research centers and development in Jiangsu province and its local joint ventures.

For information, in 2022, Toyota recorded a record production of 1.84 million vehicles in China. Although slightly declining, the following year, they still managed to assemble 1.75 million units. This step to increase production is expected to strengthen Toyota's position in the midst of intense competition and maintain growth in the world's largest automotive market.