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Business trends

China rises to No. 2 market for Japan autos, surpassing home

Toyota plans 20% boost in capacity to limit exposure to trade war

Toyota is planning to increase output capacity by 20% in China, mainly in electric vehicles and plug-in hybrids.   © Reuters

GUANGZHOU -- China is expected to overtake Japan as a market for Japanese-branded automobiles for the first time this year, with Toyota Motor and other players planning to expand production capacity in the country to limit their exposure to the brewing U.S.-China trade war.

The seven major Japanese automakers sold 2.65 million new vehicles in China between January and July, up 5% on the year, with the full-year total projected to top 5 million. Meanwhile, their sales in Japan are projected to total around 4.9 million. The U.S. will most likely remain their biggest market.

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