Toyota is reportedly hammering a deal with FAW to increase plug-in electric car manufacturing capacity in China.
The investment of around 8.5 billion yuan ($1.22 billion) in Tianjin would be enough to build a factory with manufacturing capacity of 200,000 plug-ins annually.
"Located at Binhai New District in Tian, the yet-to-be-built plant is said to cover an area of around 1.97 million square meters and involve a total investment of RMB8.495 billion, according to the aforementioned media outlet, citing a file from local authority. Besides, Tianjin government expects to make evident headway in this project by 2020.
The new plant is in all likelihood built to manufacture the BEV model jointly developed by Toyota and BYD, a source close to the matter said on condition of anonymity. However, “the fact shall be in compliance with the official announcement,” said BYD, in response to the rumor."
The Japanese manufacturer copes pretty well in China and managed to sell 1.62 million cars (including Lexus) in 2019, which is a 9% year-over-year improvement, despite the overall market going down by 8.2%.
According to previous reports from 2018, Toyota-FAW was readying to produce 120,000 plug-ins annually in its existing plant in Tianjin (110,000 PHEVs, and 10,000 BEVs).
In the case of the JV with GAC, the plan is for 400,000 NEVs annually:
"GAC Toyota, the Japanese automaker's another joint venture in China, would beef up production by 400,000 NEVs a year, added with RMB15 billion worth of capital from both parent companies, a local media reported in last December."