Toyota takes advantage of China-Japan thaw with Tianjin expansion plan
The expansion will also enable it to take advantage of the US-China trade rift, which has raised prices for Tesla, BMW and other brands in China
Beijing — Toyota is likely to make 120,000 more cars a year in the Chinese port city of Tianjin, said four company insiders with knowledge of the matter. The increase is part of a medium-term strategy that is gathering pace as ties between China and Japan improve. The Japanese carmaker’s plan to boost annual production capacity by about a quarter in the port city will lay the foundation to increase sales in China to 2-million vehicles a year, a jump of more than 50%, the four sources said. The Tianjin expansion signals Toyota’s willingness to start adding significant manufacturing capacity in China, with the possibility of one or two new assembly plants in the world’s biggest car market, the sources said. Car imports could also increase, they said. The move comes at a time when China’s trade outlook with the US appears fraught and uncertain. Toyota plans to significantly expand its sales networks, and focus more on electric car technologies as part of the strategy, the sources said,...
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