Toyota’s main Chinese joint venture has laid off around 1,000 workers due to weak local sales, according to local reports citing a statement from the company.
State owned Guangzhou Automobile, known as GAC Group, earlier this month reported sales at the GAC Toyota joint venture fell 10% to 453,000 units in the first half of 2023, with the company’s weak electric vehicle (EV) line blamed mostly for its weak performance.
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In contrast overall Chinese vehicle H1 sales rose 9% to 13.12m units in the six-month period, driven mainly by strong demand growth for electric and hybrid vehicles. GAC Group dedicated EV manufacturer, GAC Aion, sales doubled to over 100,000 units. The bZ4X is GAC Toyota’s only EV model although the company also sells hybrids.
Domestic brands have gained significant market share in China in the last few years, to account for around 50% of total sales. Other vehicle manufacturers have also announced job cuts at their Chinese joint ventures this year due to flagging sales, including Mitsubishi and Ford.
Toyota has since acknowledged the decision by the GAC JV to cut jobs was ”the result of its current production levels” with pressure mounting to speed up the switch to EVs.
Sales at Toyota’s other major venture in China, with FAW Group based in Changchun, fared slightly better with sales rising 5% to 368,000 units in the first half of 2023.
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