Toyota committed to the Chinese market, FAW Toyota VP explains

Gasgoo.com (Shanghai December 19) - Toyota will not be abandoning the Chinese market, but rather accelerate the pace of its development in the country, Elite Reference reported today, citing a statement made by FAW Toyota Acting Vice President Tian Congming. "During extensive communication with CEO Akio Toyoda and the Chinese managerial team, they assured us that Toyota's expansion in China will be even quicker," Mr. Tian said in a recent press conference.

Last month, Mr. Tian (pictured) took several FAW Toyota investors to Japan to meet with leaders from Toyota headquarters to discuss the future of the brand in China. "Toyota's leaders reassured us that, although Toyota's current state in the Chinese market is less than ideal, both [Chinese and Japanese] sides' strategy for [China] will not change," Mr. Tian said. According to Mr. Tian, Toyota's development strategy for the Chinese market has been set down long in advance, and that once both sides agree, they will begin implementing those plans.

In regards to the decision to rebrand Toyota's Chinese brand as 'China Toyota', Mr. Tian said that the name change was proof of the manufacturer's long-term commitment to the country. "We have always strove to increase our localization in the country, with Chinese talent being assigned to undertake [our] most important assignments." Mr. Tian also added that Toyota especially values domestic Chinese research and development work.

When asked about the high prices set for hybrid Toyotas in China, Mr. Tian explained that the majority of key auto parts for the vehicles, such as batteries and motors, need to be imported directly from Japan, raising vehicle prices. Now, following the establishment of the new technology research and development center in Changsha, Jiangsu, Toyota will be able to develop and manufacture auto parts in the country in the near future. "In the future prices of new hybrids sold in China will be substantially lower," Mr. Tian stated.

Finally, Mr. Tian assured that FAW Toyota dealerships are committed to offering high quality customer service for both Chinese consumers and current vehicle owners. Mr. Tian expressed the importance of non-sales services for its dealerships, saying that a third of JV dealerships in the country can operate normally without having to make a single vehicle sale.

Toyota has plans to release over 20 new vehicles in China over the next three years, with a number of those destined to be sold by the FAW Toyota JV.