Toyota to create sales firm in China

Toyota to create sales firm in China

TOKYO: Japan's top automaker Toyota plans to become the first foreign firm to build a nationwide auto sales network in China, a press report said on Sunday.

Toyota Motor Corp. has reached an agreement with China's biggest carmaker China FAW Group Corp. to establish a sales firm for autos made by their joint ventures, the Nihon Keizai Shimbun said.

As sales by the joint ventures in China are now conducted separately, the planned firm is expected to greatly enhance marketing efficiency, the leading business daily said.

The two partners intend to own equal shares of the sales firm, which is expected to be set up by year's end after obtaining permission from the Beijing government.

The number of sales outlets are expected to double to more than 100.

The move is part of Toyota's drive to capture 10 percent of China's fast-growing vehicle market by 2010. The company aims to double its annual output in China to more than 200,000 vehicles, the daily said.

Last October, Toyota began production of its Vios compact sedan through the Tianjin Toyota Motor Co., a joint venture with China FAW, and also set up a sales company to sell the Vios. The car is sold through about 50 dealerships.

Toyota and its Chinese partner began producing its Land Cruiser Prado sports-utility vehicles last month at Sichuan Toyota Motor Co., another joint venture with China FAW.

Last week, Toyota also began production of another SUV, the Land Cruiser 100, at a subsidiary of China FAW in Changchun --AFP