Toyota Motor Corp. has decided to resume the construction of a new plant in China, which was suspended due to the global economic crisis, in view of the rapid expansion of the local auto market, sources familiar with the matter said Saturday.
The plant in Changchun City, which will be built as a joint venture with major Chinese automaker FAW Group Corp., may become operational by the end of March 2011.
Toyota held a groundbreaking ceremony for the plant, which will have an annual production capacity of 100,000 units, in October 2008.
But the largest Japanese automaker froze the plan on the back of the economic crisis at the time.
The company already has a plant in Changchun, producing the Prius gasoline-electric hybrid car.
Toyota initially decided that Corolla models would be produced at the plant, but may change the plan as it is currently reviewing its strategy in the Chinese market, the sources said.
China is expected to overtake the United States as the largest auto market in terms of new car sales volume this year.
Toyota estimates sales of some 700,000 units in China this year and aims to sell at least 800,000 there next year.
