Toyota Motor will construct another capacity at its auto plant in China’s Guangzhou, a company source stated, in addition to beefing up production at a factory located in Tianjin city by 120,000 vehicles annually.
A person close to the company stated the automaker will construct capacity at the production hub located in the south China city of Guangzhou to also produce an extra 120,000 vehicles annually, a boost of 24 percent over present capacity.
All together, between the eastern port city of Tianjin and Guangzhou, Toyota will increase its overall manufacturing capacity by 240,000 vehicles annually, or by about 20 percent.
Toyota’s production capacity in China is 1.16 million vehicles annually.
It was reported this week that Toyota prepares to build extra capacity in Tianjin to produce 10,000 all-electric battery cars and 110,000 plug-in hybrid electric cars annually.
China has said it would remove foreign ownership caps for firms making electric and plug-in hybrid vehicles in this year, for makers of commercial vehicles in 2020, and the wider auto market by 2022. Beijing also has been pressing automakers to produce and sell more electric automobiles through purchase subsidies and production quotas for such green vehicles.
Toyota’s planned extra capacity in Guangzhou is also for electrified vehicles, stated the company source, who refused to be named as he is not authorized to discuss on the matter.