FAW Toyota aims to sell 400,000 cars in '09

Shanghai, May 22 (Gasgoo.com) China's auto market has been recovering since the government launched a slew of stimulus measures earlier this year. To benefit from the support policies and meet the growing market demand, FAW Toyota has decided to raise its sales target of this year from 380,000 vehicles to 400,000 units, xinhuanet.com reported today.

Satoru Mori, general manager of FAW Toyota Motor Sales Company, said yesterday that FAW Toyota will make good preparations for the auto-parts supplies needed for more output. The 20,000 vehicles added to this year's sales target will include different models. For instance, the newly launched RAV4 SUV is selling well and its sales goal of 50,000 units is raised to 60,000 units.

As the Chinese government halved the sales tax to 5% on small cars with engines of 1.6 liters and less starting January 20, FAW Toyota's vehicles of these engine sizes have seen growth in sales as well, including the 1.6L Corolla, Corolla EX, and Vios sedan models. These models may contribute 40% to the targeted sales of 400,000 units for this year, Mori said.

FAW Toyota's RAV4 SUV received 12,072 orders within 20 days since its launch on April 10 this year. In the first fourth months, the company sold 50,746 Corolla cars and 13,195 Corolla EX cars. The upgrated Corolla and Corolla EX models are also joining the ranks of hot-selling small cars.  

Its sales slump in the first few months has urged FAW Toyota to change its production strategy. With the launch of new models of Corolla and Corolla EX, the joint venture has started to boost the output of its sub-1.6L cars to benefit from China's stimulus policy for small cars.

In the first quarter, FAW Toyota sold 63,005 vehicles, down 30% year on year, and 30,256 units in April, down 12.1% y/y, while the Chinese ventures of GM, Volkswagen, Nissan and other global carmakers saw their sales grow rapidly in the recovering China market.