FAW Toyota plans to invest 8.5 billion to build a plant

FAW Toyota plans to invest 8.5 billion to build a plant
FAW Toyota is preparing to build a new energy vehicle factory with an annual capacity of 200000 vehicles in Tianjin. The new plant will cover the complete production process including batteries and so on, with a total investment of nearly 8.5 billion yuan.
FAW Toyota is planning to build a new energy vehicle factory with an annual production capacity of 200000 vehicles in Tianjin. The new plant will cover the complete production process including batteries and so on, with an estimated total investment of nearly 8.5 billion yuan. According to the planning of Tianjin, FAW Toyota will make significant progress in this new factory project by the end of 2020.
“New energy plant will be put into production in addition to the new tnga model.” FAW Toyota insiders confirmed to reporters that it will build a new factory at the same time, revealed that the new factory will produce models in the future.
“Last year, the joint venture between BYD and Toyota is likely to reach a new production agreement with BYD in the future An unnamed person in the industry said. In this regard, BYD said in response to reporters, “all official information shall prevail.”.
An annual investment of 2.5 billion yuan in new energy vehicles
According to a document obtained by a reporter from the Financial Association, the new energy plant construction project of Tianjin FAW Toyota Motor Co., Ltd. is located in the ecological city of Tianjin Binhai New Area, covering a total area of 1.97 million square meters. The first phase covers an area of 970000 square meters, with a construction area of about 342000 square meters. The total investment of the project is 8.495 billion yuan, with an annual design capacity of 200000 vehicles, covering six processes required for the manufacturing of new energy vehicles such as stamping, welding, coating, assembly, resin coating and batteries.
“The project is still in the early stage of preparation, and relevant procedures and processes are being promoted.” On February 26, a staff member of the industrial department of Tianjin Development and Reform Commission told the financial association that the enterprise is still in the process of further argumentation and planning for the project, and the final approval of the municipal development and Reform Commission is required before the official launch.
The above documents show that the project is still in the stage of design bidding, and the design period is planned to last May.
“The new plant will be mainly for new energy vehicle products, and more than one new product will be put into production, which is independent of the TEDA plant renovation project (new factory).” In recent years, the reporter of Toyota said that “the main purpose of Toyota’s internal product introduction is to meet the needs of Toyota’s internal production capacity.”
In addition, in June last year, GAC Toyota Co., Ltd. carried out the second EIA announcement for its capacity expansion project of 200000 new energy vehicles. According to the published documents, GAC Toyota plans to expand (build) 200000 new energy vehicle production lines per year, with a total investment of 4.988 billion yuan.
“Toyota will adjust its production capacity in China, including new energy vehicles, according to market demand.” Toyota China related people told the associated press.
According to Toyota’s global strategy, it will launch 10 pure electric vehicles from 2020, including 6 global models based on e-tnga architecture. For the Chinese market, on April 20 last year, Toyota President Akio Toyoda said that by 2025, Toyota would introduce 10 electric vehicles to China.
“Toyota + BYD” pure electric vehicle or put into production in new factory
In fact, this is the second time that FAW Toyota has expanded the production capacity of new energy vehicles in recent two years. In August 2018, Tianjin FAW Toyota TEDA plant’s new energy vehicle renovation project was approved. According to the plan, the total investment of the renovation project is 1.762 billion yuan, which will increase the annual capacity of 120000 new energy vehicles for TEDA factory, including 110000 plug-in hybrid vehicles and 10000 pure electric vehicles.
In two years, more than 15 billion yuan has been invested to expand the production capacity of new energy vehicles, which shows Toyota’s urgent mood to develop China’s new energy vehicle market. In addition to the rapid expansion of production capacity, Toyota is also actively seeking to expand the existing technology path.
“The new models to be put into production in the new factory in the future will not be limited to the concept of Toyota’s tnga architecture, but will produce products based on the electric platform.” The aforementioned FAW Toyota insiders told reporters.
According to the unnamed insiders, the above-mentioned “electric platform” products, in addition to those based on Toyota’s own e-tnga platform, are likely to include pure electric vehicles developed jointly by Toyota and BYD and based on BYD’s e-platform.
In June 2019, Toyota announced BYD as its power battery supplier for new energy vehicles; in July, Toyota and BYD reached a cooperation to jointly develop pure electric vehicles for cars and SUVs. The new cars use the Toyota brand and are planned to be put into the Chinese market before 2025. At the same time, the two sides will also jointly develop the power batteries required for the R & D models.
On November 7 of the same year, the two sides further signed a joint venture agreement to establish a pure electric vehicle R & D company within 2020. The new company will carry out the design, research and development of pure electric vehicles and platforms and parts used by the vehicles.
According to the announcement issued by BYD through Shenzhen Stock Exchange at that time, the products designed and developed by BYD and Toyota joint venture company will make full use of BYD’s existing electric platform technology and electric parts supply, and integrate into Toyota’s quality and safety control standard requirements, and the pure electric vehicles designed and developed by the joint venture company can use Toyota brand.
“The joint venture between Toyota and BYD is a research and development company, and the relevant pure electric vehicles will be produced within the existing joint venture system of Toyota.” At that time, relevant people from Toyota China once told the Financial Association