Toyota Marketing in China Essay Example | Topics and Well Written Essays - 1750 words

Toyota Marketing in China - Essay ExampleSales of tradeable vehicle in the terra firma are forecasted to grow at a CAGR of around 5.5% during 2008-2010. Based on the past performance, it is projected that passenger car sales will cross 11 Million Units in 2010. China is the worlds sulphur largest car market. It overtook Japan just last year and is challenging to become the worlds largest automobile market. The industrial revolution in China has prompted development and growth in the middle-class of China and the automobiles have translated into a symbol of prestige.Toyota was a latecomer to the China market. Within its global strategies, North America is the top priority, followed by its home country Japan. China has been included in Toyotas top development strategy in recent years with its first China-made VIOS sedan produced in Tianjin in October 2002. Considering China as an immature auto market, the company had adopted a three-stage development plan -- first to establish a loc al sales network and launch grease promotions, then to build auto parts manufacturing bases, and, finally, to establish joint ventures (JVs) with local players and produce automobiles. Although a latecomer, Toyota has jumped to the front in terms of imported car record -- 50,000 units annually (Jiang, 2004). The company stepped into the most important and critical stage -- speeding up the localization of its products, since its rivals, such as Honda and General Motors, started accelerating their saturation into China. After the market entry of the Prado and Land Cruiser with Chinas First Automobile Works, its manufactured goods with Guangzhou Automobile Manufacturing Co -- Camry, which was a great success in the Untied States, was also developed. Forbes powder magazine comments on Toyotas success in the US auto market, saying that once the company sets goals, it will manage to exceed the targets. What is more demanding to its rivals is Toyotas approach to realize these goals. Tha t idea whitethorn well apply to its China development. Although Toyota missed the first opportunities, it will likely catch up if it pays more attention to the China market and introduces richly-end brands. Toyota may scale back its ambitious target of selling more vehicles in the United States this year than it did in 2007, as damage from an economic slowdown and high oil prices becomes more fully known. Toyota sold more than 4.8 million vehicles worldwide in the first half of this year, up 2% from the same period a year earlier, the Japanese automaker said Wednesday. That exceeded General Motors Corp.s sales of 4.5 million vehicles in the same period, setting up Toyota to potentially end GMs 76-year run as the worlds top automaker by sales (CNN Money, 2007)Toyota, the third-biggest foreign car brand in China, reported investing 3.6 billion Yuan ($526.8 million) to double the production efficacy of one of its plants. This should boost Toyotas overall capacity in China to 830,000 units by the first half of 2010.Global requirement for light hybrid electric vehicles (HEV) is estimated to devolve 4.5 million units in 2013. Increasing energy costs and greater than before emissions regulations are likely to increase demand for HEVs. The US is expected to experience the highest train of demand for HEVs, estimated at two million units in