2014 Beijing: One Country, Two Toyota Corollas. We Explain Why

Although the Toyota Corolla Altis have been on sale in Malaysia for quite some time already, the model has just made its first appearance in China earlier this week, at the 2014 Beijing International Auto Show.

The Corolla (Altis suffix is only used in the ASEAN region) was joined a new twin called Levin, wearing a slightly different front design and slightly different tail lights. Apart from that, both cars are essentially the same European market Toyota Corolla Sedan (Corolla Altis).

Why Are There Two Different Toyota Corolla Models In China?

Like many other car makers operating in China, Toyota has two joint ventures in the country; FAW-Toyota and Guangzhou-Toyota.

China is a large developing country and it would be quite difficult to expect one joint-venture to provide all the necessary investment to grow its production capacity and distribution network.

Local regulations limiting inflow of foreign capital also meant that car companies must form joint ventures with a local company to operate there.

At the same time, the regulation limits the number of automotive manufacturing joint ventures that a foreign company can form to just two.

This, compounded with the difficulty of finding a suitable partner meant that it is quite common for a local Chinese company to form joint ventures with several competing foreign brands. Guangzhou Automobile Group (GAC) for example, has joint ventures with both Toyota and Honda.

Keeping both joint venture partners happy is a difficult task because although both FAW-Toyota and Guangzhou-Toyota sell Toyota cars, they are both competitors within the same family, like a very elaborate rivalry between siblings.

Foreign principals like Toyota will try to keep their fiercely competitive local joint ventures apart by providing different products to different joint ventures, who will then sell it through their respective distribution networks.

Previously, the Corolla sedan was only sold by FAW-Toyota while Guangzhou-Toyota sells the Toyota E'Z, essentially a five-seater MPV version of a European market Corolla.

In China's new car market, the C-segment market is the biggest. It is worth about 5.5 million cars every car, which is more than the total number of passenger cars sold in the UK and Germany combined.

Recent development clearly suggests that Guangzhou-Toyota has succeeded in convincing the Toyota principals in Japan to provide them with a product to compete in China's largest car segment.

Like Malaysia, Chinese car buyers overwhelmingly prefer sedans. MPVs, be it five-seater or a seven-seater models are less popular than SUVs, possibly due to China's single child family planning policy.

For the first time in China, both Corolla sedans will be sold via FAW-Toyota and Guangzhou-Toyota, though with a different nameplate and minor styling differences at the front and the rear.

The Levin will be sold by Guangzhou-Toyota while the Corolla (similar to our Corolla Altis) will be sold by FAW-Toyota.

Apart from having a different front-end, different tail light cluster, some minor differences in interior trim (depending on model variant) and a different nameplate, both models look almost the same when viewed from the rear and the sides.

Both Are Aimed At The Young

Toyota says both models are developed following Toyota's new pursuit of Waku-Doki, the Japanese word for excitement. Both are likely feature a sporty variant and a range of aesthetics enhancing optional accessories, as seen in the images here.

So this is not a case having of one car aimed at the mature crowd while another aimed at the younger crowd.

Choosing which to buy will be down the customer's own preference and close proximity of the preferred dealer network.

Under the hood, both models will be powered by a 1.6-litre or a 1.8-litre engine, both Dual VVT-i units. Curiously the side fenders still show 'VVT-i' badges.

Power is transferred to the front wheels by a CVT or a five-speed manual transmission.

Both the Levin and the Corolla will only go on sale in China around September this year. Actual specifications will be revealed closer to the launch date.

China-made Toyota Corolla Hybrid And Toyota Levin Hybrid In 2015

The two Toyota sedans will also see a hybrid variant joining their model line-up in 2015.

“The two models would from next year, be available as hybrid models with major hybrid components produced in China,” said Yasumori Ihara, Executive Vice President and member of the board of Toyota Motor Corporation.

Toyota also adds that this will be the first time that Toyota is making hybrid cars with hybrid components produced outside Japan. Ihara also expressed his hope to one day sell 2 million vehicles annually in China.

Currently, Toyota is assembling the Camry Hybrid (Guangzhou-Toyota) and Prius (FAW-Toyota) in China using hybrid components imported from Japan.