GAC Toyota to add RMB 2.45 billion to enlarge capacity, introduce new SUV model

Shanghai (Gasgoo)- Chinese automaker GAC Group has agreed a project that allows GAC Toyota to expand its production capacity and introduce more models, the group announced on July 2. The project involves an additional investment of RMB 2.45 billion, which should be raised by GAC Toyota itself.

GAC Toyota saw its annual retail sales volume exceeding 440,000 vehicles in 2017, surpassing its initial sales goal. To ease the capacity pressure and introduce the TNGA (Toyota New Global Architecture) platforms, the third assembly line of the Sino-Japanese joint venture was put into operation in January this year with an initial capacity of 100,000 vehicles on an annual basis. In addition, the automaker has another two assembly lines possessing annual capacity of 380,000 vehicles in total. Once the capacity of the third assembly line is completely released, the total capacity of GAC Toyota will increase to 600,000 vehicles per year.

Apart from capacity expansion, new products introduction will be another highlight of this project. Reportedly, GAC Toyota has been facing a paucity of SUV models. Toyota has brought a compact crossover SUV model dubbed RAV4 in China, while it is produced and sold by FAW-Toyota, the Japanese automaker's another joint venture in China. Moreover, the all-new Toyota RAV4 has been launched outside China, which is expected to enter the world's largest auto market in the future.

The all-new Toyota RAV4 will purportedly be introduced by both GAC Toyota and FAW-Toyota. Based on the TNGA platform, the new model incorporates some design elements of the FT-AC (future Toyota adventure concept) in its exterior and offers two types of front end design. In addition, the all-new RAV4 provides two powertrain variants. The traditional fossil-fuel-powered version carries a 2.5L naturally aspirated engine, which is paired with a new 8-speed automatic transmission. The hybrid power system is equipped with a motor and a 2.5L naturally aspirated engine matched with an electro continuously variable transmission (ECVT).