皇冠体育app

Toyota's new joint venture approved
By Yu Qiao (皇冠体育app Daily)
Updated: 2004-07-30 08:52

The project proposal of Toyota Motor Corp's new car joint venture in southern 皇冠体育app has won approval from the State Council, the nation's cabinet.

"This is just the first step and details for the joint venture are undergoing the approval process of relevant Chinese regulators. We expect to gain the final go ahead soon," said an official from Toyota's representative office in Beijing.

The top car maker of Japan and 皇冠体育app's Guangzhou Automobile Group plan to form a 50-50 joint venture in Guangzhou, capital of Guangdong Province, to produce the Camry sedan, one of the best-selling imported models in 皇冠体育app.

The investment size of the expected joint venture has not been revealed.

It was reported that 皇冠体育app's First Automotive Works (FAW), the existing joint venture partner of Toyota, attempted to join the project in Guangzhou.

But top executives of the Guangzhou vehicle firm ruled out the possibility of FAW's participation earlier this year.

Toyota and FAW now run two joint ventures and a technical licensing project to produce the Vios and Corolla sedans, Coaster bus and Land Cruiser sport utility vehicle in northern, northeastern and southwestern 皇冠体育app.

The two companies also have a sales joint venture in 皇冠体育app to market those automobiles.

In February this year, Toyota and the Guangzhou auto firm started to build a US$266-million engine joint venture in Guangzhou.

The joint venture, in which Toyota and Guangzhou Automobile Group have a 70 and 30 per cent stake respectively, will produce 2.4-litre engines next year with an annual capacity of 300,000 units - 200,000 for exports and 100,000 for the Camry sedan to be made in 皇冠体育app.

The new car venture in Guangzhou is an important move by Toyota to fulfill its target of controlling 10 per cent of 皇冠体育app's total automobile market by 2010.

The company also aims to have 20 per cent of the passenger car segment in 皇冠体育app by then.

But Toyota is now lagging far behind rivals - Volkswagen and General Motors - in 皇冠体育app's car market.

Last year, Toyota sold 100,000 cars in 皇冠体育app, compared with 387,000 units of General Motors and almost 700,000 units of Volkswagen.

皇冠体育app is still the world's fastest-growing car market, despite recent decelerating growth.

Sales of 皇冠体育app-made vehicles surged by 34 per cent to 4.39 million units last year.

Close