Toyota to sell new and old Corolla simultaneously

To compete in China's intensively-competed automobile market, Toyota Motor Corporation decides to produce and sell the new Corolla while no stop for the old model in China. This is the first time for Toyota to sell its overall improved model without any halt of the old.

Toyota decided to start the production of new Corolla in No.3 factory with an annual production capacity of 200,000 units in Tianjin this spring and to supply in China's market in the beginning of summer this year.

It is reported Toyota initially planed to stop the production of the Corolla generation 9 in the first factory in Tianjin, and transfer to the production of new Corolla or other models. However, the Chinese partner proposed no halt for the production of the old model since it will cut costs and reduce investment in new equipment. Further more, the old model priced lower than the new Corolla, which provides more choices for target clients. Toyota finally adopted this proposal.

The reports from survey companies show that in 2006 the price of old Corolla dropped by about 10% over the previous year.