Toyota St. Petersburg plant has increased the localisation rate

Toyota St. Petersburg plant has increased the localisation rate

Kolesa.ruToyota St. Petersburg plant has increased the localisation rate. St. Petersburg plant of Toyota, which launches the production of the eighth generation of the business-sedan Camry today, alongside RAV4 crossover, had announced that the localisation rate in production exceeded 30% at the end of last year. As told by the executive director of Toyota Motor: Isida Masasi to Kolesa.ru portal, the company will continue to work on increasing the rate further.

“Yes, we will push the localisation rate up even further. For that purpose, we are planning to purchase new spare parts from Russian suppliers. For example, we will procure gasoline tanks, exhaust systems and wiring locally” – said Isida Masasi.

According to the executive director, Toyota St. Petersburg plant expects production growth in Russia in 2018. “The production volume depends on customer demand. Despite the difficulties in demand forecast, we observe positive dynamics of development in the Russian market and expect a year-on-year growth of production in 2018” – as stated by Isida Masasi.

Toyota St. Petersburg plant manufactured 66,684 vehicles last year. 32,931 RAV4 (+7.6%) and 28,199 Camry (+0.5%) have been sold in Russia in 2017, which occupy the top two spots in the sales rankings of the country. Russian assembly vehicles are also exported to Kazakhstan and Belarus. The sales of the sedans and crossovers have a little bit shrunk within the January-April 2018 period, in comparison with the same period of the previous year: 8930 RAV4 (-3.8%) and 8080 Camry (-1.7%) vehicles have been sold.

Land Cruiser Prado SUV has become the third best-sold Toyota model in Russia last year (13,755 units). However, as stated by Isida Masasi, the model is not planned to be manufactured in Toyota St. Petersburg plant.

“There are other more obscure factors, besides current sales, which will have an effect on the decision on localisation. For example, Land Cruiser Prado significantly differs from Camry and RAV4 in terms of construction, which are vehicles with similar lines of engines. Land Cruiser Prado, on the other hand, is a body-on-frame SUV with a different engine. The preparations for the production of the vehicle, which has almost nothing in common with the ones on the conveyors, will be very costly and  unprofitable” – said Masasi Isida. He added that the current sales volume of Land Cruiser Prado doesn’t justify the efforts to increase the localisation rate of the SUV.

As one may remember, the large-scale assembly of Prado was carried out in the facilities of Sollers in Vladivostok between 2013-2015. As stated by Toyota previously, the project has been discontinued on the grounds of being “economically impractical in the long run”