On Monday, Guangzhou Toyota Motor Co., Ltd., a joint venture between Japan's Toyota and Guangzhou Automobile Group, was established. According to the agreement, the total investment of the new joint venture company is 3.821 billion yuan, and the registered capital is 1.3 billion yuan. GAC Group and Toyota each hold 50% of the shares. The start-up model of the joint venture company is a new generation of “Jiamei†sedans, with a starting production capacity of 100,000 units/year. In the future, it will achieve rolling development based on market demand. According to plan, the joint venture will start production in the first half of 2006. Toyota's, Nissan's and Honda's vehicle production and sales have all been settled in Guangzhou, and a Guangzhou auto industry cluster featuring Japanese auto products is rapidly emerging. Guangzhou Nansha Development Zone, Guangzhou Economic and Technological Development Zone, Huadu, and Zengcheng Yonghe will form several large-scale auto parts supporting bases. The scale advantages, resource advantages, and cost advantages brought about by industrial clusters will be increasingly highlighted, and the Pearl River Delta will have full potential for development. For a "auto parts factory in the world." If Zhejiang private enterprises are ambitions to build their own vehicles, then Guangdong is to attract foreign investment in the entire vehicle project, and private enterprises will support the entire vehicle project to enter the auto parts industry with even more lucrative profits and less policy risks. With the gradual maturity of the automobile industry, the profit margin of vehicle sales will gradually decline and shift to the automotive aftermarket, making the automotive aftermarket known as the largest profit “cheese†in the automotive industry chain. For the majority of SMEs, supporting the Japanese cars in Guangzhou will be a wealth feast at the beginning of this century.