Yaris Production Scheduled to Start in China in Mid-2008.

Tokyo, Japan, Dec 28, 2006 - (JCN Newswire) - Toyota Motor Corporation (TMC: TSE:7203) 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 (TSE: 7203; NYSE: TM), 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.

Source: Toyota Motor Corporation

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