Japanese automaker Toyota has announced plans to substantially increase production in China, aiming to manufacture around 3 million vehicles per year by the end of the decade.
If successful, this would represent a 60% increase from its previous production record in the world’s largest automotive market, according to Reuters.
World’s Leading Automaker
Toyota is considering a minimum production target of 2.5 million, possibly reaching 3 million vehicles annually in China by 2030, according to insiders familiar with its plans. Achieving this target would be a 63% increase from Toyota’s record output of 1.84 million vehicles set in 2022, with last year’s production reaching 1.75 million.
This ambitious strategy represents a shift for Toyota, which aims to reclaim market share lost in recent years to domestic Chinese automakers like BYD. Notably, this approach contrasts with other automakers, including some Japanese competitors, who are scaling back production or exiting the Chinese market.
Toyota has already briefed select suppliers on the anticipated production boost to strengthen supplier confidence and ensure a stable supply chain. When questioned by Reuters, Toyota commented that it continues to explore initiatives to remain competitive, stating it is dedicated to improving vehicle offerings tailored for the Chinese market.
Supporting the Semiconductor Industry
Meanwhile, Japan’s government has proposed a plan worth 10 trillion yen (€60.9 billion) to support its semiconductor industry, according to Reuters. This initiative is part of a broader strategy to strengthen Japan’s chip supply chain resilience amid global disruptions and trade tensions between the U.S. and China. The proposal, which includes funding legislation for next-generation chip manufacturing, will be presented to parliament in its next session. The cabinet is set to approve this comprehensive economic support package on November 22.
