{"text":[[{"start":9.24,"text":"Toyota’s sales in China tumbled 23 per cent in August in the seventh consecutive monthly fall for the world’s largest car manufacturer as soaring fuel prices hammer petrol and hybrid vehicle sales."}],[{"start":23.24,"text":"The prolonged slump is the most severe for Toyota in the Chinese market for at least a decade. The Middle East conflict has spurred consumers towards electric vehicles and knocked the company’s sales in China down almost 19 per cent to 927,866 vehicles in the first eight months of the year."}],[{"start":43.04,"text":"Toyota has been the most resilient of all legacy automakers in China after cut-throat competition led many rivals to retreat from the market or rethink their strategy. However, the poor run of sales has exposed the Japanese automaker’s vulnerability to nimble Chinese rivals for the first time."}],[{"start":60.24,"text":"A sales slowdown in China as local competitors gain market share has also stung German manufacturers Volkswagen, BMW and Mercedes-Benz this year, prompting them to cut their annual forecasts."}],[{"start":72.6,"text":"Toyota is pivoting its local strategy to a “China-for-China” model that uses more Chinese parts and technology suppliers and empowers domestic engineers to compete better against local EV rivals led by BYD. That strategy has shown some signs of success as battery electric sales in China rose 36 per cent in August."}],[{"start":93.08,"text":"Its local joint venture partner GAC announced on Monday an agreement to acquire a 50 per cent stake in FAW Toyota, its other joint venture in the country. That could pave the way for the Japanese automaker to consolidate two ventures into one, allowing parts sharing, larger suppliers and cost efficiencies."}],[{"start":111.56,"text":"The Japanese automaker is also breaking from the joint venture model in China by building its own factory in Shanghai to manufacture Lexus EVs that is set to open next year."}],[{"start":122.32,"text":"As well as trying to catch up on technology and development speed, Toyota is laying the groundwork to embark on its biggest factory overhaul investment programme in decades to modernise its production facilities through robots to fight back against Chinese rivals."}],[{"start":136.72,"text":"The challenge for Toyota in China reflects the broader ill health of the world’s biggest auto market. Sales have shrunk 21.8 per cent this year to 13.4mn units, with combustion engine sales being hit far harder than EVs."}],[{"start":151.36,"text":"“China’s downturn is accelerating the replacement of internal combustion engines by new energy vehicles, rapidly shrinking the addressable market for ICE-dependent automakers,” wrote Bill Russo, chief executive of Automobility Ltd."}],[{"start":165.28,"text":"Jin Tang, senior principal researcher at Mizuho Bank, said that “Toyota has been doing well in China until now but the EV shift has made things difficult”."}],[{"start":175.14,"text":"China’s shrinking combustion engine vehicle market meant that the mid-range segment was rapidly becoming a two-horse race between Toyota and VW, he added."}],[{"start":184.84,"text":"The China sales drop at fellow Japanese automaker Honda has been even more dramatic, slumping by about three-quarters in July and August compared with the same period last year."}],[{"start":195.72,"text":"The challenges for the China business have resulted in a 3.6 per cent dip in Toyota’s global sales in the year to date to 6.6mn vehicles, in a sign of the mounting challenges for new chief executive Kenta Kon."}],[{"start":209.52,"text":"Toyota shares have fallen 15 per cent this year as the stronger yen has weakened its earnings prospects along with the China market downturn."}],[{"start":222,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790672609_2397.mp3"}