Shanghai, June 4 (Gasgoo.com) Toyota Motor Corp, Japan's largest auto makers, plans to invest RMB 1.5 billion to boost production capacity of the No. 2 plant of Tianjin FAW Toyota Motor Co Ltd, according to Toyota's recent announcement. A new production line may be built to make Toyota's new model Lexus locally in China.
The plant's production facilities, which principally specialize in producing Reiz and Crown, are expected to produce 150,000 vehicles upon the completion of the investment, up 50% compared with the current 100,000 units, the statement said. It will also establish R&D center to further intensify its research and development power of car models.
In addition, Toyota may consider building a Lexus production line in China if the model's annual sales reach 30,000 units, said a senior executive at Toyota's China venture. In the first ten months of 2007, Toyota sold 22,102 units of Lexus, a sharp increase of 136% from a year earlier. Sooner or later, Lexus will be locally made for the fast-growing Chinese market, and the second plant of Tianjin FAW Toyota is seen as the best facility for this mission.
Tianjin FAW Toyota has three plants in China, producing its best-selling models such as Vios, Corolla, Reiz and Crown. The total capacity of these plants is 420,000 vehicles annually.