Toyota Motor is preparing to increase capacity at its two main production hubs in China, in Tianjin and Guangzhou, according to reports in Japan citing company insiders.
The automaker is said to be planning to expand production capacity by a combined 240,000 units annually at the two sites as it looks to bring in new new energy vehicles including electric and plug in hybrid models.
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A total of US$257m is said to have been earmarked for the Tianjin expansion for a production capacity of 10,000 EVs and 110,000 plug in hybrids per year.
The timing of production start was not disclosed but new minimum sales quotas for new energy vehicles will be enforced in China at the beginning of 2019 so operations are expected to start in the next year.
Separate reports suggested this is part of a longer term plan to lift production capacity by 50%, as the company targets annual sales of 2m units in the country.
Toyota currently has an annual production capacity of 1.16m units in China, including 510,000 units in Tianjin. It sold 1.29m vehicles in the country last year, including imports, and is targeting 1.4m sales this year.
Company sources suggest a lack of capacity has held back Toyota's sales performance in China recently.
Toyota also plans to expand its sales networks in China as part of its aggressive expansion plan.
