THE TIMES OF INDIA

FRIDAY, AUGUST 22, 2003

Toyota to produce luxury car in China

PTI

BEIJING: Japanese auto major, Toyota Motor Corporation, has planned to
invest $311 million in China to produce its luxury 'Crown' car model for the
first time outside Japan, the state media reported on Thursday.

The first batch of Crowns is expected to roll off the production line in two
years, Xinhua news agency quoted the company sources as saying in the north
Chinese port city of Tianjin.

It will be the first time for Toyota to produce a luxury car outside Japan,
the report said.

The increased capital will be used to build a new auto plant for Tianjin
Toyota Company to make the Crown. Tianjin Toyota, a joint venture set up by
Toyota and Tianjin No 1 Auto Corporation in the year 2000, is now
manufacturing the Vios, an economy car model.

The investment increase plan will be implemented in compliance with an
agreement between Toyota and China Faw Group (Faw) signed this April. Under
the plan, Faw would become a new investor in Tianjin Toyota.

According to the plan, the former Tianjin Toyota will change its name to
Tianjin-Faw-Toyota, and the total investment in the new company is expected
to reach $408 million.

Industry insiders said that the investment increase was an apparent sign
that Toyota was stepping up its efforts to tap China's booming auto market,
10 per cent of which it hoped to occupy.

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