EV：one of Toyota’s focuses in China

　　Hattori Etsuo: EV one of Toyota’s focuses in Chinese market

　　[Editor’s note] under the theme of Science and technology • create a better future, the Eighth China (Guangzhou) International Automobile Exhibition held in Guangzhou China Import & Export Fair Pazhou Complex in December 21st to 27th.

　　SOHU AUTO will launch talks with CEOs from automakers in the SOHU studio of SOHU booth in 2.1 Exhibition Hall to conclude the performance of China auto market in this year and forecast the trend and prospects of the coming year. All the internet users are welcomed to join use the micro blog to directly discuss with these industrial leaders. The following is an interview of Hattori Etsuo, chief representative of Toyota in China.

　　Moderator: Hello, every one of you SOHU AUTO website browsers. We are at the site of 2010 Guangzhou Motor Show. I am glad that we have invited chief representative of Toyota in China Hattori Etsuo here.

　　Hattori: Hello everybody, I feel so much honored to have the chance to communicate with you. Thank you!

　　Moderator: firstly, would you please tell us the models you will debut at this Guangzhou auto show and highlights of the event?

　　Hattori: China has become the world’s largest car market and producer. And Guangdong Province is the largest car market in China; therefore, we have always attaching great importance to Guangzhou Auto Show. Since we have a partner Guangzhou Automobile Group in Guangzhou, we still have large scale just like previous years. This time we have exhibited a total of 45 car models, including 14 Lexus, 8 concept models as well as 5 imported Toyota vehicles among which 18 are produced cooperatively.

　　Moderator: Why you Toyota have paid so much emphasis on Guangzhou Auto Show?

　　Hattori: just as I mentioned earlier, China is the largest auto market, and Guangdong Province is the largest market in China. Besides, we have a partner in Guangzhou.

　　Moderator: Is there any consideration that you want to prove yourself through this opportunity since influenced seriously by the recall issue?

　　Hattori: it has nothing to do with the recalls. Our concern about China auto market and Guangdong Province as well as Guangzhou Auto Show will never change whether there are recalls or not.

　　Moderator: what’s your expectation about Toyota sales of this year in China?

　　Hattori: We expect to break our original plan of 80 million.

　　Moderator: This year Chinese automotive market has been very growing rapidly for many special reasons. As many incentive policies will be ended next year, in this case, what do you think the market will be next year and how will Toyota be affected?

　　Hattori: personally, I think the potential growth of the Chinese market is still very large. I estimate that next year increase of next year compared to this year will be more than 20%

　　Moderator: the strategies Toyota in recent years can be said relatively conservative. Now everybody is saying the next decade China auto market will witness high sales. For Toyota, how do you plan to size a greater chance to occupy a larger market share?

　　Hattori: As you mentioned, in recent years, Toyota’s annual production and sales growth in China e is not as fast as the growth of the whole market, so our market share is suffering a little declination. Actually, this is quite normal during the whole development process. We started local production only in the year of 2000 in China. We grew rapidly in China in the year of 2006 and 2007. Consequently, there were some issues need to be adjusted in this period of rapid growth. For greater development in the future, we have slow down in recent years, which do not mean we are conservative or we attach no importance to the Chinese market. We are just for greater development in the future. To catch up the pace of future China auto market, we are making adjustments, including production, sales, as well as the improvement of product line. Of course, the sales relates largely with the construction of marketing network. We look forward to having a greater and greater role in the future development of the Chinese market.

　　Moderator: within five years, for example, by 2015, do you have any goals in the Chinese market?

　　Hattori: Now I have no specific figures in my mind. Our company is now making long-term development plan, there are no specific numbers to be released. In the future, we will still develop steadily and strongly in China just as previously.

　　Moderator: Toyota always has quite excellent consumer awareness in the Chinese market.

　　But after massive recalls, and the contradiction between Toyota and dealers several months ago in China, as far as you know, have the consumer impression toward Toyota brand and its product quality influenced?

　　Hattori: no matter recalls or contradiction between Toyota and dealers are objective problems during the development process. We have deal with the recalls responsibly and seriously, through negative effects may occur a short period, but now it seems the image of the Toyota brand is not impacted in China.

　　Moderator: customer loyalty is not affected?

　　Hattori: I hope so.

　　Moderator: Recently Beijing is brewing new policies to limit the purchase and use of cars, which is greatly concerned by automakers. As far as you know, will policies copied by other major cities and whether car sales will be impacted?

　　Hattori: Beijing is also forced to do so. But for long term, traffic congestion and environmental problems can be solved through a more proactive approach, such as Intelligent Transportation Systems, and more energy saving measures. In this case, the number of vehicles does not necessarily be reduced, but the problems can still be solved. It is hard to tell whether this policy will be adopted by other cities since I do not know about them. However, several large Chinese cities have the same problems. I think more positive approach should be taken to rather than limit the number of vehicles to solve these problems. Of course, all these big cities should take some actions to some extent. However, I think the second and third tire cities, or even rural areas will grow quite rapidly and have huge development potential. Therefore, in my opinion, through quite a long time, the sales and production in China auto market can maintain a very high level of growth.

　　Moderator: in terms of the development of electric vehicles, the Chinese government is very positive in the promotion of electric vehicles, hybrid and other types of new energy vehicles, and there have been a lot of subsidies. It can be seen by the whole world. However, compared with manufacturers such as Nissan and Volkswagen, Toyota is not so positive. It seems you only have Prius with moderate sales. There is not any reports that you are about to launch new models. Besides, whether the plug-in Prius will be produced is also uncertain. What is your planning about future development of new energy vehicles?

　　Hattori: I think our Prius; our Toyota is the automaker who cares most about the energy saving in the Chinese market as well as worldwide. Toyota was the first manufacturer who massively produced and sold hybrid vehicles. We started as early as in 1997. Outsides Japan, China was the first country our hybrid Prius produced in. This year, Guangzhou Toyota has begun the production of Toyota Camry hybrid. In addition, Toyota has paid efforts in all field of energy saving. In addition to hybrid, we are also actively in the development of plug-in hybrid, electric vehicles, as well as hydrogen fuel cell vehicles. In terms of the plug-in hybrid you just mentioned, we have recently signed a contract with the China Automotive Technology and Research Center in Tianjin, to carry out drive test of plug-in hybrid Prius together.

　　At the end of October this year, we signed an agreement to conduct a formal field test this year. According to the experimental results, we will develop plug-in charging specifications and standards for China and bring into the market as soon as possible. In addition, we also exhibited a pure electric vehicle concept car at the auto show in Guangzhou. We are also actively developing fuel cell vehicles and slowly to a practical stage. Moderator: China now is developing electric cars largely; as well as hybrid and energy-saving cars. Toyota was the first to do propaganda in the Chinese market, but we feel you have not taken the advantage to nurture the market. Do you think in this respect there is any experience to sum up?

　　Hattori: it is true. There are also other reasons for limited sales; one is the relatively small proportion of the localized production, which has led to high costs and low customer awareness. In addition, government subsidies and preferential policies have not yet implemented. But I think we also have certain contribution to popularity of green cars such as hybrids and electric cars through the production and marketing of the Prius and Camry in China. In the future, we will also focus on electric vehicle development.

　　Moderator: The Chinese Government has called for a transformation from a big auto producer to a strong automaker. Do you have any suggestions in this regard?

　　Hattori: China is now the world’s largest car buyer and producer. In the future, I think with the increase of the number, naturally, no matter China’s domestic manufacturers or JVs will continuously improve technical level. Therefore, China can definitely become a strong automobile production power. The Chinese government now attaches tremendous importance to energy saving cars, especially electric cars. I think in the future the Chinese market may be expanded to thirty million, four million, and even sixty or seventy million. At that time, I think China will become the largest consumer of energy saving cars.

　　Moderator: just now we mentioned the future development plans, and now what is you total production in Chinese joint ventures?

　　Hattori: FAW Toyota and Guangzhou Auto Toyota together have a total of almost 800,000vehicles. We are now building a plant in Changchun to make Corolla Changchun. The others can not be released now due to specific business development and planning. But in the future, according to the development, we may build new plants in the JVs.

　　Moderator: is there any possibility to be built in the east and middle of China?

　　Hattori: now we do not have this program. Car plants are not always at the consumptive center. Detroit is not the biggest consumer market in the United States while Japan’s Toyota is only the largest production base rather than a big market. China’s central or western have great prospects for future development. But we have no such planning right now.

　　Moderator: Thank you.

　　(Translator: Yalong/Jessie)

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　　http://auto.sohu.com/20101220/n278410807_3.shtml

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