Toyota boosts outlook for China

Toyota Motor Corp predicts its China production will return to 2012 levels by next spring, as sales hit by the soured relationship between Tokyo and Beijing are likely to start recovering early next year, according to sources.

In January and February, Toyota plans to produce 30 percent fewer vehicles than originally planned, with output reduction trimmed to 10 percent in March. In April, the automaker intends to produce about 67,000 units, the same monthly level seen in 2012, the sources said.

Amid the anti-Japan sentiment, Toyota's September sales in China plunged 48.9 percent from the same month in 2011 while its October sales dropped 44.1 per cent. In the wake of the sales slump, the company has scaled down local production by 30 percent to 50 percent. Its 2012 production is expected to fall well below the previous year's annual output of about 800,000 units.

However, as Chinese customers have gradually returned to its dealerships, Toyota reviewed its production plans. The company could be forced to revise its plans again as business is likely to be affected by future political developments between the two nations.