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Toyota Expands in China

Japanese manufacturer Toyota is trying to capitalize on the booming Chinese economy and announced plans to expand its business in the country. The first step to be taken by Toyota is to expand its consumer financing infrastructure on the aforementioned market.

According to a report by Nikkei business daily, Toyota will double its dealership count in the country, a move which will take no less than two years. Currently, Toyota offers car loans in 300 locations in 40 Chinese cities, most of them along the coast line.

The increase in numbers targets the Chinese inland, with no less than 800 dealerships to be found in some 60 cities by the end of the next fiscal year. Over the two years, the dealership count Toyota has in the country will increase from 550 to over 1,000.

For the financing infrastructure, Toyota plans to set up loan desks at both the dealerships and Toyota Financial Services units, a subsidiary of the manufacturer. For the dealership desks, personnel will be trained by the dealers.

The plan is part of Toyota's "road to recovery", as it is trying to get past the disastrous numbers recorded for the last fiscal year. In its home country, Toyota fears sales figures will drop due to the possible drop of tax subsidies.

The carmaker asked the Japanese government to extend its deadline for subsidies on newly sold environmentally friendly cars until at least March 2012. Even with the tax subsidies in place, as well as with the release of the new generation Prius, Toyota's sales continued to decline in Japan.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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