Toyota is setting its sights on a bold expansion in China, aiming to produce at least 2.5 million vehicles annually by 2030—a strategic overhaul designed to regain market share in the face of fierce competition from local rivals like BYD. This ambitious target, shared by sources close to the matter, marks a notable shift for the world’s top automaker, emphasizing Toyota’s commitment to China’s rapidly evolving car market, where local brands have edged ahead.
In contrast to several global automakers, including other Japanese firms who are scaling back operations in China, Toyota plans to boost its production capacity further, potentially hitting 3 million vehicles by decade’s end. This would be a substantial leap, representing a 63% increase from the 1.84 million vehicles it produced in China during its peak year in 2022.
Part of this new strategy is Toyota’s plan to tighten integration between its Chinese sales and production arms, focusing on enhanced efficiency within its two Chinese joint ventures. With this move, the company is signaling to suppliers its long-term commitment to the Chinese market—a critical step in securing its supply chain amid heightened competition.
To ensure the success of its ambitious production goals, Toyota plans to shift much of the vehicle development responsibility to its China-based teams. Local engineers, who have a stronger grasp of Chinese consumer preferences, will take the lead on innovations in electrified and connected car technology, which are particularly in demand in China’s tech-savvy market.
Responding to inquiries from Reuters, Toyota emphasized its focus on making “ever-better cars” for China and acknowledged the intense competition there. As the company doubles down on China, its approach signals a shift toward locally-driven production and innovation—a strategy that could position it as a formidable player in the electric and connected car markets that are increasingly defining the automotive future in China.
