Toyota is making the largest strategic adjustment since the establishment of a joint venture in mainland China and will be in place on January 4 next year. Industry analysts believe that Toyota made such a major adjustment after more than a year in the joint venture because Toyota has successfully passed the joint venture adaptation period and established a development strategy in the Chinese market, officially achieving the Chinese mainland market by 2010. 10% share of the target sprint. On December 29th, FAW Toyota’s sales company announced two important news at dealers’ conferences held in Beijing and Guangzhou respectively. First, its Vios and Corolla sedan had an average price reduction of 20,000 yuan; the other was FAW Toyota’s sales. The company will carry out major institutional and personnel adjustments. That night, FAW Toyota’s sales company confirmed that the sales department’s original network division responsible for the construction of the dealer network will be split into two, becoming the sales and sales support departments. This adjustment will strengthen the construction of a dealer network. According to Deputy Director General Dong Hai of FAW Toyota Motor Sales Co., Ltd., FAW Toyota has 140 dealers nationwide and the target is to increase to 240 by the end of next year. Another big change is the Ministry of Vehicles. The Ministry of Vehicles was once the most important department of the sales company and was responsible for the distribution of vehicles between the company and the distributors. The vehicle department also had an independent public relations planning department. Because this department had a business relationship with the public relations room directly under the sales company's management committee, FAW Toyota changed the vehicle department to the sales planning department in this adjustment, and put all public relations and advertising functions under the department. According to sources, the sales company's management committee will also make adjustments, but the news has not yet been confirmed. The exact news is that this adjustment will be completed before New Year's Day next year and will be put in place from January 4. Investment companies are busy with power In fact, the large-scale business adjustment of FAW Toyota Sales Company is only part of Toyota's comprehensive strategic adjustment in China. The exact news is that all functions of Toyota Beijing will be merged into Toyota China Investment Corporation. Prior to Toyota’s investment in establishing a joint venture in China, Toyota Beijing was a liaison organization established by Toyota in the Chinese mainland. Prior to this, many of Toyota’s major decisions in the Mainland were handled by the Beijing Office. Now Beijing Office has completed its historical mission of liaising with the mainland market and Japan’s Toyota headquarters. In fact, after Toyota started to set up a joint venture in China, its investment and operation functions in China have gradually been transferred to Toyota China Investment Corporation. Industry insiders say that almost all multinational automobile companies investing in Mainland China have experienced such establishment models and processes. Last year, Honda’s office in Beijing was merged into the Honda China Investment Company and began to implement the Chinese market strategy by the investment company. Toyota's approach is also due to the same considerations. This is also seen by the industry as a prelude to Toyota's right to the Chinese market, in order to increase the Toyota strategy's initiative in the Chinese market. For example, after merging the public relations office of the FAW Toyota Motor Corporation’s management committee with the public relations department of the vehicle division, the overall brand public relations function will be consolidated into the Toyota China Investment Corporation. This move will benefit future investment companies in implementing control over the operation and management of joint ventures in the Mainland. While people’s high-end and two-handed pursuit of Toyota's organizational restructuring in the Chinese mainland, its market strategy is also changing. The day before yesterday, FAW Toyota's sales company announced the news that the two main models had cut prices by 20,000 yuan. "FAW Toyota's share in the Chinese mainland market is only 4%, which is very regrettable," said Jun Gu, general manager of the FAW Toyota sales company. Consumers who can use Toyota cars in their daily lives are still very limited. This means that Toyota should gradually break the previous high prices of Toyota cars in the minds of consumers in the Mainland, return to Toyota's international brand image. However, "good and cheap" is just a new front that Toyota has started in the domestic market; another front is to let the impending Crown vehicle occupy the high-end luxury car market. FAW Toyota’s sales target for the Crown next year is 23,000. At the press conference the day before yesterday, Jun Guyo said that as a luxury car, the Crown will first push for government procurement vehicles and use government vehicles to gradually drive personal consumption. The specific figure given by Dong Haiyang is that it is hoped that the government and corporate procurement vehicles, that is, public commercial vehicles, can reach about 25%. Jun Guyo made it clear that the pricing of the crown will consider the pricing strategy of the new Audi A6 that will be down next year. Because Audi A6 is currently the largest Chinese government procurement model. “Our target in 2006 was 8% in the mainland China market, but only 4% at present,†said Jun Guya. Toyota is a latecomer to the Chinese mainland market. The market has few opportunities for Toyota to achieve this goal. Toyota Must be quick.
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