Global resumption of Toyota raises the Chinese market

Toyota's upcoming full-scale production has broken the silence of the latest models for several months, and it seems to announce that it will return to the Chinese market. President Akio Toyoda hopes to quickly increase production in the second half of the year, and strive to make this year's loss not too serious. Affected by the Great Japan Earthquake and the global economic downturn, Japan’s car maker Toyota expects that by 2015, the sales volume of cars produced by this company will reach 1.5 million, accounting for 15% of Toyota’s global sales.

Yizhi entered the car market in July as early as the Shanghai auto show on the eve of the official release of the Yat, full of everyone's appetite, June 22, Guangzhou Auto Toyota announced to the outside world in Beijing this new car's official price, the price range is 14.98 million - 239,800 yuan, and accept the booking.

From last year’s announcement at the Guangzhou Auto Show in December of last year, the announcement was made in April of this year. After the price is released, the final listing time of Yasuo will be scheduled on July 16. The new car was affixed by GAC Toyota to its original “FUV” label, and it was known as the “Car, MPV, SUV” in one integrated value, vowed to draw a clear line with its competitors. It is understood that Yat-induced total of 1.6L, 1.8L, 2.0L three kinds of power 6 models, in the entry-level models equipped with VSC body stability control system, TRC traction control system, HAC uphill ascent control system and 5 air bags The relatively high configuration is not common in cars of the same class.

“The comprehensive value and long-term value that Hyatt brings to customers has already surpassed that of mid- to high-class cars, but the selling price can be accepted by a wider audience. It can be said that Yizhi has exceeded the quality and imagination of mid- to high-class cars. Cost-effectiveness has established a dual benchmark for price and value in the domestic FFD market segment.” According to Feng Xingya, deputy general manager of GAC Toyota, “the market will prove that Yizhi is a value model for promoting the development of China's FUV market.”

In 2011, the overall growth rate of the domestic auto market slowed down, but SUV and MPV segment markets continued to thrive. Data showed that sales of SUVs and MPVs increased by 34.9% and 19% year-on-year in the first four months of the year. In particular, the blowout of the SUV made it possible to develop from a market segment to a mainstream market in just two years.

These changes may also indicate that consumer demand for vehicles is gradually diversifying. In fact, as the process of urbanization in China has accelerated, the family population structure has shifted to 3+2+2, and the concept of family has flourished, the domestic passenger car market is shifting toward a more rational direction, presenting a “high-level, all-round, multi-functionality”. Based on the main consumption characteristics, the era of diversified consumption in the domestic auto market is entering a new stage. Consumers pay more attention to large space and multi-purpose in the choice of car, balance between business and home, fashion and practicality. Consumer demand in the utility vehicle market is gradually showing new features of integration, advanced and highly balanced.

Obviously, traditional models cannot fully meet this comprehensive demand. This became the background for the birth of new categories such as FUVs and crossovers. GAC Toyota hopes that FUV will become another growth point after Highlander.

Protecting the Japanese manufacturing industry from launching new cars is seen as a prelude to Toyota China's return to normal production. According to Toyota’s headquarters, “Overseas production is expected to resume from August and then return to normal production levels from November to December.” At the annual general meeting of shareholders held in June, Toyota Akio advanced the schedule to July. It is understood that FAW Toyota has fully resumed production in June, and has started a two-month summer promotion activity from June 9; GAC Toyota also said that the current production has been fully restored and will not affect the supply of new vehicles.

"We are very aware of how fierce global competition is, and we hope that production will return to normal levels as soon as possible, so that Toyota's global sales this year will be equal to last year," said Toyoda. He believes that the focus is to speed up production from October of this year to March of next year to make up for the impact of previous production cuts caused by supply chain breaks.

However, in fact, it is not an easy task to restore the global production base to a normal level. Taking the North American factory as an example, it will lag behind Japan for about two months. In addition, due to production cuts and the high yen, Toyota expects operating profit for the new fiscal year (April 1, 2011 to March 31, 2012) to be 300 billion yen (approximately RMB 24.3 billion), which is comparable to the same period of last year. The decrease was 168.2 billion yen (approximately RMB 13.6 billion), a decrease of 35.9% year-on-year. In terms of sales volume, Toyota predicts that Toyota Group’s car sales in fiscal year 2011 will reach 7.24 million units, which is a decrease of about 0.9% year-on-year, basically the same as last year.

In spite of this, many Toyota shareholders still hope to protect their jobs and contribute to Japan after the disaster. "Despite the high cost of production at home, we still hope to protect Japan's manufacturing industry as much as possible," said Sakai Toru, executive vice president of Toyota Motor Corporation. This year, about 40% of the world's Toyota cars are produced in Japan, far higher than Nissan and Honda's 25%.

"If the production cost can be reduced by about 20%, we will become more competitive." Sakai Toru said, "by 2013, Toyota's new models must reach this standard." He also said that if Toyota Motor Corporation Unable to drastically reduce auto production costs, the company had to consider transferring its compact car production capacity to Japanese overseas factories.

Remarks on the Chinese market "Toyota has become proactive, has become proactive with the Chinese market, and has become proactive with Chinese consumers," said Zhang Xiaoji, chairman of the China Automotive Engineering Society. Thanks to the vigorous development of the market, China has gradually become a non-negligible coordinate on Toyota's territory. The latter sees more business opportunities from the 18 million sales and sales, and is determined to accelerate the process of localization.

"To be localized, research and development must be implemented first." In the ten-year vision of Toyota China, the Toyota China R&D base construction project that invests nearly 689 million U.S. dollars is regarded as a symbol of Toyota's real R&D in China. The 689 million U.S. dollars in R&D can also be regarded as the largest R&D investment by auto giants in China.

On the other hand, last year Toyota began PHV (plug-in hybrid) empirical tests in Tianjin, China. Today, it plans to start an empirical test of EV (Electric Vehicles) in China. The industry believes that there are indications that Toyota's policy toward the Chinese market. The wind direction has gradually matured. In the development of new energy, the brand has always had absolute advantages. The Prius, a hybrid car that had once taken the limelight in the North American market, was the pride of Toyota.

In Toyota Motor Corporation's "Global Vision for Development", it is clear that the emerging markets headed by China will become the focus of the company's business development in the future. In 2010, Japan, the United States, Europe, and other emerging markets accounted for 60:40 of sales in their total sales, but in the future, with the adjustment of the business focus, the ratio will be adjusted to 50:50, and will strive to be in 2015. Toyota Motor Corporation's global sales have increased to 9 million units, and Toyota Group's sales have increased to 10 million units. Mr. Toyoda said that the Chinese market will be the top priority for the development of traction companies.