Toyota to Launch New Camry in Russia

VIENNA – Production of the new-generation Toyota Camry will start in November at the Toyota Motor Mfg. Russia plant in St. Petersburg, Hiroyuki Ochiai, Toyota Motor Europe executive vice president-manufacturing, tells WardsAuto.

With final preparations for building the Camry under way, the auto maker has begun hiring additional workers, Ochiai says.

Toyota Europe CEO Didier Leroy.

Toyota opened its Russian plant in December 2007, but output still is low. The facility, which works in one shift, manufactured only 15,892 cars in 2010.

Despite the fact that the Camry is the only Toyota model built in Russia, the auto maker still sources some Camrys from Japan.

“We are planning to increase production in St. Petersburg,” Didier Leroy, President and CEO of Toyota Motor Europe, confirms to WardsAuto.

“I strongly challenged the TMMR organization to ensure that we will be able to move to a 2-shift operation and raise output to a level that will enable (the plant) to fully cover Camry demand on the Russian market.

“I don't want to have bridge production between Russia and Japan anymore,” Leroy says of the parallel sourcing from Japan.

Ochiai confirms plans to add a second shift in the summer of 2012. “Only when full capacity has been achieved will we put thought to the idea of introducing a further model,” Leroy says.

The possible second model for St. Petersburg would be pricey for the market.

Many of Toyota’s competitors are focusing on low-cost cars in Russia, but the auto maker mainly sells midrange and high-end cars there. “This is the segment of the market we want to concentrate on,” Leroy says.

“There are absolutely no plans in place to introduce a low-cost car on the Russian market, as we would then be competing against everybody else. And this is not a good way to develop our business in Russia.”

Although Russia is the largest Lexus market in Europe, volumes are too low to justify Russian production of the luxury Toyota brand, Leroy says. Toyota sold some 30,000 Lexus vehicles last year in Europe and expects up to 45,000 deliveries this year.

“Lexus is still a small brand at the pan-European level,” he says. “At present, there is no way Lexus will be produced in Russia or even in Europe. We will continue to import Lexus from Japan, at least for some years.”

Toyota ranks seventh in sales in Russia, behind Lada, Chevrolet, Kia, Renault, Hyundai and Nissan. The auto maker sold 75,634 cars and light-commercial vehicles through August, up 60% from like-2010.

Toyota’s best-selling model in Russia in the first eight months was the Corolla with 17,935 units, followed by the RAV 4 (16,156) and Camry (14,812). Lexus sales jumped 43.6% from year-ago to 9,146 units.

In Europe, the Camry is sold only in Russia and some Commonwealth of Independent States countries.