Toyota plans to launch more small-displacement cars in China

Shanghai December 23 (Gasgoo.com) A certain decline in the attractiveness of the Toyota vehicles has occurred in China due to the intense Sino-Japanese relations as well as repeated large-scale recalls. The brand's competitiveness has also been impaired by competitors' explosive expansion into the Chinese market.

After going through a series of adverse shocks and trials, Toyota plans to develop and launch more small-displacement (below 1.6L) cars in China to deal with market fluctuations, FAW Toyota's General Manager, Mao Liwu, said in an interview with the Information Times.

Introducing middle- and high-end models to China will surely make consumers aware of the strength of Toyota vehicles well and help improve Toyota's brand image. However, Toyota will from now on strengthen development of vehicles with 1.6L displacement to adapt to the variable market, he said.

In addition, Mao said the reason that Toyota's growth is slightly lagging behind the entire market's is that the growth in the small-vehicle segment has greatly increased owing to the Chinese government's preferential policies for small-displacement vehicles of 1.6L or below.

Toyota, producing 100,000 more vehicles annually, will not manufacture minicars between 50,000 yuan and 60,000 yuan ($7,500-$9,000), but will adjust product costs and keep the cars' prices between around 80,000 yuan and 90,000 yuan, he said, stressing that it is consistent with Toyota's concept of product introduction. 

Separately, Toyota has set up a wholly-owned research and development (R&D) center in Changshu, east China's Jiangsu province, with a total investment of $689 million. The center, under the name of Toyota Motor Engineering & Manufacturing (China) Co., Ltd. (TMEC), has a registered capital of $234 million and is expected to be partially functional next spring.