FAW- Toyota Sales Under Pressure, Bet on New Generation Carolla

JIANG Jun, general manger of FAW- Toyota tell reporter during interview, there is kind of pressure. It is not only sell cars in China, but also shall figure out automobile industry tendency and customer demand in China.

JIANG Jun is alway busy since he takes in charge of FAW- Toyota one month ago from executive vice president of FAW- GM light commercial car. From his opinion, competition of passenger car is more stiff than commercial car’s.

In year 2013, FAW- Toyota has realized 12% growth because of couple of new cars contribution. With 560 thousands cars sales, it hit the record high, but still distance 20 thousands cars from 580 thousand sales goal. Influenced by earthquake and Diaoyu Island event, development of FAW- Toyota meets problem recent years. The company does not fulfill its goal for 3 years. TIAN Congming, who only takes general manager of FAW- Toyota for half year, was transferred out again. The rejuvenation task now is delivered to hands of JIANG Jun.

This year, with new generation Corolla, Crown and new Land Cruiser etc. modes market launching, FAW- Toyota now wants to break up growth bottle neck, and aims 660 thousands sales goal, which is 18% increase. However, with competition getting stiff and more cities such as Hangzhou limit automobiles purchase, and its opponent GAC- Toyota Levin marketing introduction, FAW- Toyota still faces the uncertain future.

The 10th and 9th Carolla has realized 290 thousand sales of last year, which takes more than half percentage of all sales of FAW- Toyota. Carolla takes more than 2 million cars sales since FAW- Toyota open for business. The entire sales of the joint venture is about 4 million cars. Therefore, Carolla is definitely hot star for FAW- Toyota. The new generation Carolla is very importance for FAW- Toyota. It is not only about sales, but also takes responsibility of FAW- Toyota rejuvenation. It is the first strategic car since JIANG Jun assumes his position. It is a fight will only allows win, but no lose.

FAW- Toyota adopts 2 generations Carolla sales at the same time. Sales per month is around 25 thousands since year 2008. It is a not bad market performance. However, compared with “wolf-pack” tactics of VW etc. companies, Toyota distance VW in middle level segment further and further. Not only Germany, Dongfeng- Nissan and Beijing- Hyundai exceed FAW- Toyota as well. JIANG Jun feels the pressure from market, and realizes that FAW- Toyota will follow market pace as soon as possible.