China watch

TOYOTA expects the Camry to be the backbone of its Middle East exports, which are planned to exceed 80,000 vehicles a year within two years.

It plans to hold fast to its existing export programs, which also include New Zealand, but is not actively seeking new markets.

The car’s quality, on a global scale, will also help ensure locally produced Camrys continue well into the future against the growing threat of China, where the car is also being built, or even against other markets, according to Toyota Australia’s senior executive director of sales and marketing David Buttner.

"Our car is the best in the world," he said. "I don’t see China as a threat."The perception within Toyota is that China will have to concentrate on fulfilling the new-car demands of its own 1.3 billion people before it can concentrate on any viable export push into other markets.

However, Toyota Australia has conceded that its own Middle East exports could be pressured from other Toyota plants globally if Altona does not maintain its reputation as a cost-effective Camry source.

The first Chinese-built Camry rolled out of Toyota’s $US475 million factory near Hong Kong in May. The cars are sold in China from $US24,700 ($A32,684).

Last year was the 10th anniversary of Toyota Australia’s highly successful Camry export program to the six member countries of the Gulf Co operation Council. It exported 66,033 Camrys last year to the Middle East, of which 85 per cent were four-cylinder models. It has now delivered more than 340,000 Altona-made Camrys there since exports started.

Toyota Australia’s exports divisional manager Scott Grant said the newcomer was being eagerly awaited by markets in which it is a popular taxi and fleet car. "It is a paradox that oil-rich nations should seek a four-cylinder car, but the overall value-for-money proposition is hugely appealing," he said.

The car will be launched in the Middle East on September 1. To ensure a smooth transition from the old car to the new model, Toyota’s export division worked closely with its Middle East customers to meet local requirements.

Distributors in the region have been involved in confirmation testing of the car at Alice Springs and Middle East engineers visited the factory. Early issues with wind noise around the exterior mirrors and front pillars were resolved.

Middle Eastern Camrys will use Australian-specified suspension calibrations because it was considered a good mix for Middle East roads.

In the past, the Middle East had specified a softer suspension more in line with the United States, but distributors have embraced the new car’s ride-and-handling characteristics.

"The Australian specification delivers even better handling and a marked improvement also in ride," Mr Grant said.

Toyota expects a modest rise in exports in the last quarter of 2006 with 68,000 deliveries this year. It anticipates a sharp ramp-up next year as the sedan gains wider exposure.