Masahiro:Not decided to build plant in SH

Editor’s Note: The Media Day of the 7th China (Guangzhou) International Automobile Exhibition officially kicked off on November 23 2009. On that day there were more than 50 press conferences and over 70 new models made their debut with 32 concept cars on the show. The full-scale activities propelled the auto show to reach the peak. The major brands from home and abroad are equipped with the most complete lineup to deal with the "campaign". Nearly 60 top executives from different automakers received the exclusive interviews with Auto.sohu.com in the live studio at Guangzhou International Auto Show. Sohu Auto offered an extensive coverage about the auto show, automakers and various models. Here is the interview with Mr. Masahiro Kato，the President of Toyota Motor (China) Investment Co., Ltd.

Masahiro Kato，the President of Toyota Motor (China) Investment Co

Sohu Auto: Hello, everyone. Here is the live studio in Guangzhou auto show. The guest at this time is the President of Toyota Motor (China)-Mr. Masahiro Kato.

Masahiro Kato: Hello, everyone.

Sohu Auto: It seems that you like Beijing very much after moving home from Tianjin.

Masahiro Kato: Just as you say, Beijing features metropolitan characteristic, while Tianjin is the place where companies is located in. In Tianjin we have our own business. But after we moved to Beijing, there is also new business for us. Two aspects are both very good.

Sohu Auto: Many companies take Guangzhou car exhibition which often held at the end of the year as an opportunity to do a summary of the year. What about Toyota performance in market in the first 10 months?

Masahiro Kato：In 2009 Toyota’s growth rate will reach 20%, with the sales of 700,000. We will launch new cars next year with the hope that the sales growth rate could be increased by 100,000 to the number of 800,000. That is the goal with the rise of 20%.

Sohu Auto: The ninth factory will be built in Shanghai in the year of 2011, which hints Toyota is going to march into Yangtze River Delta region. Will Toyota’s capacity and scale exceed 1.5 million? What’s the future of China’s auto market and what’s the future’s rise rate and the capacity?

Masahiro Kato: Toyota hasn’t planned the things about the construction of new factory in 2011 yet. It is not a fact at present. For production purposes, the development of China’s auto market grows very rapidly. With regard to production capacity, it can depend on FAW Group and Guangzhou Automobile Group located in the north and south respectively. We hope that they are still having potentials to improve on the basis of existing production capacity.

Currently, Toyota has factories in Tianjin, Changchun, Chengdu, as well as Guangzhou in the south. We are thinking about how to take full use of these plants more effectively and increase the number and the capacity of new production lines so as to meet the market demand. But the things about the building of new factory in Shanghai, still hasn’t been decided yet. It is not a fact.

You mentioned whether Toyota’s production capacity in China will exceed 1.5 million cars? Today’s China’s auto market has surpassed United Stated as the world’s largest auto market, and the big market’s development in the future will be steady. For Toyota, as to the problem whether the capacity will reach the production of 1.5 million, we hope to see what you just said the output of 1.5 million per year. It is our vision. But at present, there’s no specific implementation plan. We really hope the development of Toyota will be tightly tied with that of China’s auto market.

Sohu Auto: The expansion of production capacity means that Toyota will devote more car models to China’s market. What is worth to see among Toyota’s performance in this year’s Guangzhou car show? Which car models will be the eye-catcher?

Masahiro Kato: With the increase in production capacity, new car models will go into public. However, there is no specific information about those new cars to be shared with you guys. Toyota’s theme in the Guangzhou car show is environmental security and the future. In order to fulfill the theme, Toyota has brought the core technology that is hybrid car models as the representative of the hybrid technology, such as the new Camry and the new Prius. In this year’s Guangzhou Car show new Prius made its debut in China. The new Crown was just launched at the end of October which is listed as the main model of Toyota.

Sohu Auto: I heard some cars you mentioned, including the sports Camry and the new Prius which is soon to be launched. Could you offer some details?

Masahiro Kato: Thanks for everyone’s attention. We will try to offer more hybrid products in order that everyone can personally benefits from the hybrid products.

Sohu Auto: What’s the adjustment on the launch of low-emission cars next year?

Masahiro Kato: We are counting on the improvement on the 1.6L model rather than the government’s relevant policy to import 1.6L low-emission cars in a hurry. For instance, Toyota will reduce the cost and improve quality, or introduce new models which are acceptable for consumers.

In addition, for Toyota, the biggest advantage is to have a strong product line, whether it is a low-emission car or SUV or MPV. With the rich product line, we hope to focus our energy and resources on the current car models to provide consumers with perfect models and service.

China’s market is very huge; consumer’s demand is also multi-faceted. From the sales data in January to October, in all market segments of data of not only small cars, but also SUV and MPV all surpassed the maximum data of the same period last year. We will take full use of Toyota’s advantage, perfecting the entire department’s products to provide consumers with more choice, more perfect products and services.

Sohu Auto: By the end of the year, the number of dealerships of Toyota in China will reach 650 next year. What improvement will take place on next year’s network and channels, especially some initiatives for second and third-tier cities?

Masahiro Kato: The expansion and plan of the dealerships you mentioned is currently what we are discussing. We will act in accordance with the market needs and developments. For example, if the demand in a certain area is not weak or even blank, we will figure it out and build 4S shops or dealerships there. Whether the shop is Guangzhou Toyota or FAW Toyota Automobile or Lexus, it still needs to talk about. Since China’s auto market grows very fast, China’s demand is in continuous rise, the numbers of dealers will definitely soars, at least the rise of 10% than last year.

Sohu Auto: In August, Toyota recalled a large number of cars. In consumers’ eyes Toyota is a high-quality image, so what’s Toyota’s action to ensure the high quality of its products?

Masahiro Kato: For the recalling you just said, I feel very sorry for the inconvenience caused to consumers. In order to avoid such things, we are longing for a build of perfect system and new countermeasures which are the solution to the problem of quality. We raised a point that is to return to the origin. As an enterprise to produce vehicles, we must return to the nature of production. Specifically, TPS is the production system of Toyota: the former producing line must output products and process without any flaws and transfer them to the next line.

Sohu Auto: Mr. Masahiro Kato, thank you so much for coming to our studio and taking interview, hoping Internet users keep an eye on Toyota’s development in China and enjoy the high-quality products of Toyota. Thank you! (Translator: Qinghua/Sailor)

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