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Case Title:

Toyota : Looking for growth in China

Publication Year : 2006

Authors: Rajan Shah, Joel Sarosh Thadamalla

Industry: Automobiles

Region:China

Case Code: GRS0163A

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Toyota, the World’s No. 2 automobile manufacturer was a late entrant into Chinese automobile market. In 2005, Toyota’s market share in China was just 3.5% compared to 13% in US and 40% in Japan. Toyota took unconventional route in the Chinese market whereby the auto parts supplier of the Toyota group entered in China before production of finished cars initiated. Toyota launched its world famous Camry Sedan in China with a mission to achieve 10% market share in the Chinese automobile industry.

The case deals with the different joint venture partnerships of Toyota which focused on product localisation approach. The case discusses the upcoming Government policy regarding implementation of European emission standards, the competition scenario and product recall problems. Would Toyota be able to surpass its rivals by acquiring bigger share of the Chinese automobile market?

Pedagogical Objectives:

  • Analyse the Chinese Automobile Industry and its importance for the foreign Automobile manufacturer
  • Toyota’s expansion strategies
  • Toyota’s Strategies to tap Chinese automobile market.

Keywords : Toyota; Global automobile industry; China automobile industry; Camry Sedan; Organic growth; entry level strategies; Joint ventures; Growth Strategies Case Study; Original equipment manufacturer; Kiichiro Toyoda; International business expansion; European emission standards; FAW; BAIC; SAIC;, Chinese government policy; Competition scenario; Product recall

Contents : 
Introduction
Toyota Motor Corporation
Automobile Industry in China
Chinese Automobile OEMs Segment
Toyota’s Joint Ventures in China
Chinese Sedan Segment: Price
Toyota Motor Corporation -Time line

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