Toyota May Hike Capacity in China More than 50%

Toyota Motor Corp. is preparing to expand its annual production capacity in China more than 50% to 2 million units, sources tell Reuters.

They say the plan will begin by adding the ability to make 120,000 electrified vehicles per year in Tianjin. Toyota’s complex there currently has annual capacity to build 510,000 conventionally powered vehicles. Toyota’s other facilities in China can produce as many as 650,000 units per year.

Reuters cites two Tianjin government websites that indicate Toyota has received regulatory approval to add annual capacity in the port city to assemble 10,000 all-electric vehicles and 110,000 plug-in hybrids.

The news service’s sources say Toyota also plans to increase imports and build two more assembly plants in China over the next few years. The sources say Toyota’s bullish view of the Chinese market resulted from a tour of Toyota facilities in Japan by Chinese Premier Li Keqiang three months ago.