Yaris Production Scheduled to Start in China in Mid-2008

Tokyo, Japan, Dec. 28, 2006 - (JCN Newswire) - Toyota Motor Corporation announced today that Guangzhou Toyota Motor Co., Ltd. (GTMC), a joint vehicle production and sales company established with Guangzhou Automobile Group Co., Ltd. (Guangzhou Automobile) in China in 2004, is scheduled to begin production of the Yaris (known as the Vitz in Japan) in mid-2008. The Yaris, whose annual production volume is expected to be approximately 80,000-90,000 units, will mark the second vehicle series to be produced by GTMC, following the Camry, which went into production in May this year.

In line with its planned production of the Yaris, GTMC is set to increase its capital by 49 million U.S. dollars (approx. 5.7 billion yen).

Market needs in China are diversifying as the "motorization" of the country continues, and, thus, calls for more-fuel-efficient, economical compact vehicles are on the rise. The decision to produce and market the Yaris in China is an effort to meet these customer needs.

As a world-class production plant, GTMC not only features the latest advanced equipment for helping to maintain strict quality standards throughout all of its vehicle-production processes, it is also making considerable efforts to keep noise to a minimum, appropriately treat wastewater, recycle waste materials and use environmentally considerate materials under its corporate policy to be a "pioneer in environmental preservation and a good corporate citizen in China". GTMC has also been actively training personnel at its engineering training center, which was established in January 2005.

Meanwhile, the GTMC-produced Camry is set to exceed its initial sales plan of 50,000 units by the end of the year by approximately 5,000 units.

Outline of GTMC


Company name     Guangzhou Toyota Motor Co., Ltd. (GTMC) 
Location         Guangzhou Nansha Economic and Technological 
                 Development Zone, Guangdong, PRC 
Representatives  President: Toru Kuzuhara
                 Executive vice president: Yuan Zhongrong 
Establishment    September 1, 2004 
Duration of 
 joint venture   30 years 
Capitalization   1.3 billion yuan RMB (approx. 17.3 billion yen) 
Equity 
 participation   Guangzhou Automobile: 50%; 
                 TMC: 30.5%; Toyota Motor China Investment (TMCI): 19.5%
Employees        Approx. 3,500 
Land area        1,900,000m2 
Product lineup   Camry 
Production 
 capacity        200,000 units/year (from October 2006) 
Start of 
 production      May 2006



About Toyota Motor Corporation

Toyota Motor Corporation , established in 1937, is
one of the world's representative automobile manufacturers, producing
vehicles in 26 countries and regions and marketing vehicles in more than
170 countries and regions. In fiscal 2006, Toyota provided nearly eight
million vehicles on a consolidated basis to customers around the world
under the Toyota, Lexus, Daihatsu and Hino brands. Toyota had more than
280,000 employees at the end of fiscal 2006. The company is
headquartered in Aichi, Japan. For more information, please visit
www.toyota.co.jp/en/index.html.

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