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