Toyota Tsusho ups its Toyota output forecast

Subscribe to Oneindia News

TOKYO, Sept 21 (Reuters) Toyota Tsusho Corp, a trading company partly owned by Toyota Motor Corp, said on Friday it expects Toyota Motor's overseas output to reach 6.2 to 6.3 million units in 2011, revising up its previous estimate of 5.8 million units.

Toyota Tsusho is heavily involved in Toyota's overseas production and has its own estimate of the car maker's production plans abroad.

It is more than 35 percent owned by companies belonging to the Toyota group.

''All Toyota plants abroad are operating at full capacity, except those in Taiwan and Malaysia,'' Junzo Shimizu, Toyota Tsusho's president and CEO, told Reuters in an interview.

''Their production will exceed our initial target of 5.8 million units (set last year).'' As the world's biggest carmaker is racing to add production capacity around the world, affiliate Toyota Tsusho is busy supplying processed metals, machinery and parts to Toyota's more than 30 plants abroad.

Toyota Tsusho's operating profit grew 3.5 times in the five years to March 2007 as the carmaker's overseas production nearly doubled during the period.

The trading company is also rapidly expanding its dealer networks in emerging markets like Russia, China and Africa, which will account for most of the industry's growth as demand sputters in the United States, Japan and much of Europe.

Shimizu, an ex-Toyota executive, said his company aims to double its car sales in Russia to 40,000 units by 2010 by doubling the number of dealers to 14-15 by then.

''It's one of our most profitable markets, where luxury cars like Lexus sell well,'' he said, adding he eyes handling non-Toyota cars in the market like Fuji Heavy Industries Ltd and Suzuki Co..

The heavy reliance on Toyota-related businesses -- about 80 percent of its operating profit come from businesses with Toyota related companies -- prompted Toyota Tsusho to diversify more into areas like liquid natural gas, coal and other natural resources, chemicals, textiles and food.

''We need to make bold investments to create value in the new businesses,'' he said. Toyota Tsusho is currently engaged in exploration of LNG in Australia, he said.

Awash with cash, Toyota Tsusho plans up to 230 billion yen ( TOKYO, Sept 21 (Reuters) Toyota Tsusho Corp, a trading company partly owned by Toyota Motor Corp, said on Friday it expects Toyota Motor's overseas output to reach 6.2 to 6.3 million units in 2011, revising up its previous estimate of 5.8 million units.

Toyota Tsusho is heavily involved in Toyota's overseas production and has its own estimate of the car maker's production plans abroad.

It is more than 35 percent owned by companies belonging to the Toyota group.

''All Toyota plants abroad are operating at full capacity, except those in Taiwan and Malaysia,'' Junzo Shimizu, Toyota Tsusho's president and CEO, told Reuters in an interview.

''Their production will exceed our initial target of 5.8 million units (set last year).'' As the world's biggest carmaker is racing to add production capacity around the world, affiliate Toyota Tsusho is busy supplying processed metals, machinery and parts to Toyota's more than 30 plants abroad.

Toyota Tsusho's operating profit grew 3.5 times in the five years to March 2007 as the carmaker's overseas production nearly doubled during the period.

The trading company is also rapidly expanding its dealer networks in emerging markets like Russia, China and Africa, which will account for most of the industry's growth as demand sputters in the United States, Japan and much of Europe.

Shimizu, an ex-Toyota executive, said his company aims to double its car sales in Russia to 40,000 units by 2010 by doubling the number of dealers to 14-15 by then.

''It's one of our most profitable markets, where luxury cars like Lexus sell well,'' he said, adding he eyes handling non-Toyota cars in the market like Fuji Heavy Industries Ltd and Suzuki Co..

The heavy reliance on Toyota-related businesses -- about 80 percent of its operating profit come from businesses with Toyota related companies -- prompted Toyota Tsusho to diversify more into areas like liquid natural gas, coal and other natural resources, chemicals, textiles and food.

''We need to make bold investments to create value in the new businesses,'' he said. Toyota Tsusho is currently engaged in exploration of LNG in Australia, he said.

Awash with cash, Toyota Tsusho plans up to 230 billion yen ($2 billion) investment over the next two years, half of which will go to non-car businesses.

Shimizu also said his company's first-half profit would likely exceed the internal target helped by strong sales of cars and metals and the weak yen.

Toyota Tsusho booked 34.9 billion yen in group operating profit in the April-June first quarter, up 47 percent over a year earlier, achieving 26 percent of its annual target of 132 billion yen.

REUTERS KR RN1658 billion) investment over the next two years, half of which will go to non-car businesses.

Shimizu also said his company's first-half profit would likely exceed the internal target helped by strong sales of cars and metals and the weak yen.

Toyota Tsusho booked 34.9 billion yen in group operating profit in the April-June first quarter, up 47 percent over a year earlier, achieving 26 percent of its annual target of 132 billion yen.

REUTERS KR RN1658

Please Wait while comments are loading...