Japanese automakers crank up their engines
Japanese automobile giants Toyota, Honda and Nissan are determined to ramp up their investments and production capacity in China, as they strive to win a bigger market share in the country, according to the Economic Information Daily.
Toyota reportedly said it would boost its already strong production and design capabilities to enhance its competitiveness in the Chinese market.
Toyota New Global Architecture is the automaker’s innovative system for producing cars, which covers automobile research and development, design, manufacturing and procurement.
The Japanese carmaker introduced the system into the Chinese market in 2017, aiming to revamp its production and design modes there.
Based on TNGA, Toyota’s two popular models, the Corolla and Levin, are scheduled to launch their plug-in hybrid electric versions in 2019, targeting China’s new energy vehicle market.
The Economic Information Daily also reported that Nissan Motor is poised to invest 100 billion yen ($888.81 million) to build a new plant and upgrade its existing plants in China, so as to expand its production capacity.
Collaborating with China’s automaker Dongfeng Motor, Nissan plans to build a vehicle assembly plant in Wuhan, capital of Hubei province.
When the Wuhan plant goes into operation and the existing plants finish their upgrading and expansion, the annual production capacity of Nissan in China is expected to exceed 2 million units by 2020.
The newspaper reported that Honda Motor is also actively expanding its production in China.
GAC Honda Automobile, one of the Japanese automaker’s joint ventures in China, plans to increase its annual capacity from 600,000 units to 720,000 units in 2019 by installing a new production line in its plant in the Zengcheng district of Guangzhou.
The annual capacity of Honda in China is about to increase from 1.08 million units to 1.32 million units by next year.
The Japanese automakers view China as key to their future development.
Industry insiders say the move by the Japanese comes as the Chinese automobile market is keeping to its sustained growth momentum.
According to the China Association of Automobile Manufacturers, sales of vehicles in China topped 14 million units in the first half of this year, up 5.6 percent year-on year.