Toyota to Expand its Production Line in United Kingdom

Toyota to invest USD294 million in United Kingdom’s car manufacturing unit

United Kingdom: Japan automobile giant, Toyota Motor Corporation is going to expand its market penetration in United Kingdom. The company is planning to invest USD294 million in its existing car plant located in Burnaston, United Kingdom. The step is taken by the company to  boost competitiveness and promote the use of locally-built components.

The company currently manufactures Auris hatchback and midsize Avensis car. It is expected that with this investment, the production capacity of the plant would increase on an yearly basis. Besides manufacturing of Auris hatchback and midsize Avensis car, the vehicles produced in the factory at Burnaston would also be exported in various other markets.

Toyota's Europe chief, Johan van Zyl said, “Our investment demonstrates that, as a company, we are doing all we can to raise the competitiveness of our Burnaston plant in Derbyshire”. "Continued tariff-and-barrier free market access between the UK and Europe that is predictable and uncomplicated will be vital for future success."

As per TechSci Research, the recent investment pooled in by Toyota in United Kingdom, is likely to expand its production of vehicles in the country in coming years. Consequent to this, the step taken by the company would generate an emerging demand for tires in United Kingdom’s OEM tire market, which would eventually, influence the overall tire industry of the country in approaching years.

According to a recent report published by TechSci Research, “United Kingdom Tire Market Forecast & Opportunities, 2021’’, tire market in the United Kingdom is projected to surpass US$ 6 billion by 2021. United Kingdom tire market is predominantly replacement driven, owing to large and expanding vehicle fleet size in the country. In 2015, the country’s tire market was dominated by the passenger car tire segment, which accounted for more than 80% of the total tire demand in the UK, followed by light commercial vehicle and medium & heavy commercial vehicle tires. A major portion of demand for tires in the country emanates from London and South East regions due to their large automobile fleet size and high level of urbanization.