The Toyota automobile company has two important partners in the Chinese market: China FAW Group Corporation and Guangzhou Automobile Group Co.
Toyota has been operating in China largely through joint ventures, and its success in producing products that meet local demands and establishing its sales and service network has contributed significantly to Toyota’s profits.
Building on the firm business foundation it has established, this Japanese company conducts its operations with the aim of promoting further growth and increasing profitability by further developing its sales and service network and expanding its product line.
In terms of production, Toyota has been doing a significant part of its business in China, including in relation to the production and sale of vehicles, through joint ventures.
In 2021, total vehicle sales in the Chinese market were 25.17 million units, about the same as 2020’s 25.21 million vehicles.
In this market, Toyota’s sales in 2021 were 1.94 million vehicles, 107.8% of those of the previous year.
In the domestically produced passenger vehicle market in mainland China (20.78 million vehicles), Toyota had a 9.3 percent market share.
This company has been expanding the distribution network of locally produced vehicles in cooperation with China FAW Group and Guangzhou Automobile Group under the names Tianjin FAW Toyota Motor and Guanqi Toyota Motor, respectively.
For imported vehicles, Toyota has been mainly expanding the Lexus brand sales network.
Toyota plans to further increase sales by expanding the number of dealers and its product line.
In addition, as the market in China develops and becomes more sophisticated, the company plans to promote so-called “Value Chain” businesses, such as used car sales, services, financing and insurance, to contribute to the development of a mobile society.