According to a Dow Jones report, Toyota on Tuesday said it has formed a vehicle sales company in Beijing jointly with China’s FAW Group Corp., in a bid to meet diversified consumer demand in the vast Chinese market.
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The new joint venture, called FAW Toyota Motor Sales Co., will start operations on November 1 with 68 dealers across China and five branch offices, in Tianjin, Changchun, Chengdu, Shanghai and Guangzhou, Dow Jones said.
Toyota is already in a partnership with FAW Group to jointly produce four models, including the Crown luxury sedan and the Land Cruiser sports utility vehicle, the news agency noted.
Through the tie-up with FAW, China’s biggest auto maker, Toyota hopes to eventually obtain a 10% market share in China by 2010, Dow Jones added.
According to the report, the new car sales joint venture is capitalised at $US25 million with FAW holding a 36% stake, Toyota 32% and the remaining shares held by Toyota’s and FAW’s regional companies in China.
The venture will handle sales and after-sales service for Toyota and Daihatsu Motor Co. brand vehicles and parts produced in China, Dow Jones said.
