Sales of marketable vehicle in the country are forecasted to grow at a CAGR of around 5.5% during 2008-2010. Based on the past performance, it is projected that passenger car sales will cross 11 Million Units in 2010. China is the world's second largest car market. It overtook Japan just last year and is challenging to become the world's largest automobile market. The industrial revolution in China has prompted development and growth in the middle-class of China and the automobiles have translated into a symbol of prestige.
Toyota was a latecomer to the China market. Within its global strategies, North America is the top priority, followed by its home country Japan. China has been included in Toyota's top development strategy in recent years with its first China-made VIOS sedan produced in Tianjin in October 2002. Considering China as an immature auto market, the company had adopted a three-stage development plan -- first to establish a local sales network and launch brand promotions, then to build auto parts manufacturing bases, and, finally, to establish joint ventures (JVs) with local players and produce automobiles. Although a latecomer, Toyota has jumped to the front in terms of imported car volume -- 50,000 units annually (Jiang, 2004). The company stepped into the most important and critical stage -- speeding up the localization of its products, since its rivals, such as Honda and General Motors, started accelerating their saturation into China. After the market entry of the Prado and Land Cruiser with China's First Automobile Works, its manufactured goods with Guangzhou Automobile Manufacturing Co -- Camry, which was a great success in the Untied States, was also developed.
Forbes magazine comments on Toyota's success in the US auto market, saying that once the company sets goals, it will manage to exceed the targets. What is more demanding to its rivals is Toyota's approach to realize these goals. That estimation may well apply to its China development. Although Toyota missed the first opportunities, it will likely catch up if it pays more attention to the China market and introduces high-end brands. Toyota may scale back its ambitious target of selling more vehicles in the United States this year than it did in 2007, as damage from an economic slowdown and high oil prices becomes more fully known.
Toyota sold more than 4.8 million vehicles worldwide in the first half of this year, up 2% from the same period a year earlier, the Japanese automaker said Wednesday. That exceeded General Motors Corp.'s sales of 4.5 million vehicles in the same period, setting up Toyota to potentially end GM's 76-year run as the world's top automaker by sales (CNN Money, 2007)
Toyota, the third-biggest foreign car brand in China, reported investing 3.6 billion Yuan ($526.8 million) to double the production capacity of one of its plants. This should boost Toyota's overall capacity in China to 830,000 units by the first half of 2010.
Global requirement for light hybrid electric vehicles (HEV) is estimated to reach 4.5 million units in 2013. Increasing energy costs and greater than before emissions regulations are likely to increase demand for HEVs. The US is expected to experience the highest level of demand for HEVs, estimated at two million units in