TOKYO Toyota Motor, the world's largest producer of gasoline-electric vehicles, said Wednesday that it would assemble its hybrid cars in China in response to Beijing's effort to develop more fuel-efficient models.
.
Japan's largest automaker will assemble kits of the Prius hybrid car in Changchun, in northeastern China, with FAW Group, said Shigeru Hayakawa, a Toyota spokesman. The project marks the first time Toyota will build hybrid cars outside of Japan.
.
Toyota will also license the engine technology to FAW. It already provides hybrid technology to Nissan and Ford, but neither Ford, Nissan nor General Motors will release hybrid models until at least 2005.
.
Toyota's decision to bring its most advanced technology to China may win the carmaker government support as it seeks to catch up with Volkswagen, General Motors and Honda in the world's fastest-growing auto market. Toyota wants to increase its share of China's vehicle sales to 10 percent by 2010, from 3 percent now.
.
"This will help Toyota raise its profile in China, further reinforcing its image as the leader in environmentally friendly technology," said Yoshio Inamura, a manager at Tokyo-Mitsubishi Asset Management.
.
The carmaker currently makes all of its hybrids in Aichi Prefecture, in central Japan. It is expanding production abroad to take advantage of increasing demand as oil prices have surged. Toyota officials declined to say how many units of the Prius the company will produce with FAW.
.
The Prius, which sells for about $20,000 in the United States, is one of Toyota's most popular models. The carmaker may also start assembling hybrid models, including the Prius, at its North American factories, Hayakawa said.
.
Toyota makes Vios and Corolla cars in China and assembles eight other models under license, including the Land Cruiser sport utility vehicle.
.
The carmaker said this month it would form a $461 million venture to make Camry sedans in Guangdong Province, in southern China, with Guangzhou Automobile Group.
.
"We hope to share new technology with Chinese consumers, and we want to make more of a contribution to the development of the Chinese automobile industry," Akio Toyoda, senior managing director at Toyota, said at a press conference in Beijing. "We believe that China will become the No.1 automobile market in the world."
.
Prior to production in China, Toyota will export the Prius there and sell it through Changchun FAW Fengyue Auto, a venture with FAW.
.
Fengyue has been making Toyota's Land Cruiser 100 models under license since last year.
.
Fuel-efficiency tests conducted in China showed that the Prius was 40 percent more efficient than vehicles with conventional gasoline engines, Toyoda said in an interview in Beijing in June.
.
China's gasoline price, controlled by the government, has risen to 3.66 yuan a liter, or $1.66 per gallon, this week.
.
Making the Prius in China will also push Toyota past Honda in terms of market share. Honda, which makes gasoline-electric versions of its Civic and Insight sedans, will introduce a hybrid model of the Accord in the United States this month, but has no plans to produce hybrid vehicles in China.
.
China reduces car forecast
.
China cut its forecast for passenger car production this year because sales have been rising at a slower pace and most carmakers will not meet their output targets.
.
Chinese carmakers are likely to make 2.39 million passenger cars in 2004, compared with the previous forecast of 2.82 million units, the National Bureau of Statistics said on its Web site. Production rose 83 percent last year to 2 million units, the China Association of Automobile Manufacturers said.
.
Bloomberg News TOKYO Toyota Motor, the world's largest producer of gasoline-electric vehicles, said Wednesday that it would assemble its hybrid cars in China in response to Beijing's effort to develop more fuel-efficient models.
.
Japan's largest automaker will assemble kits of the Prius hybrid car in Changchun, in northeastern China, with FAW Group, said Shigeru Hayakawa, a Toyota spokesman. The project marks the first time Toyota will build hybrid cars outside of Japan.
.
Toyota will also license the engine technology to FAW. It already provides hybrid technology to Nissan and Ford, but neither Ford, Nissan nor General Motors will release hybrid models until at least 2005.
.
Toyota's decision to bring its most advanced technology to China may win the carmaker government support as it seeks to catch up with Volkswagen, General Motors and Honda in the world's fastest-growing auto market. Toyota wants to increase its share of China's vehicle sales to 10 percent by 2010, from 3 percent now.
.
"This will help Toyota raise its profile in China, further reinforcing its image as the leader in environmentally friendly technology," said Yoshio Inamura, a manager at Tokyo-Mitsubishi Asset Management.
.
The carmaker currently makes all of its hybrids in Aichi Prefecture, in central Japan. It is expanding production abroad to take advantage of increasing demand as oil prices have surged. Toyota officials declined to say how many units of the Prius the company will produce with FAW.
.
The Prius, which sells for about $20,000 in the United States, is one of Toyota's most popular models. The carmaker may also start assembling hybrid models, including the Prius, at its North American factories, Hayakawa said.
.
Toyota makes Vios and Corolla cars in China and assembles eight other models under license, including the Land Cruiser sport utility vehicle.
.
The carmaker said this month it would form a $461 million venture to make Camry sedans in Guangdong Province, in southern China, with Guangzhou Automobile Group.
.
"We hope to share new technology with Chinese consumers, and we want to make more of a contribution to the development of the Chinese automobile industry," Akio Toyoda, senior managing director at Toyota, said at a press conference in Beijing. "We believe that China will become the No.1 automobile market in the world."
.
Prior to production in China, Toyota will export the Prius there and sell it through Changchun FAW Fengyue Auto, a venture with FAW.
.
Fengyue has been making Toyota's Land Cruiser 100 models under license since last year.
.
Fuel-efficiency tests conducted in China showed that the Prius was 40 percent more efficient than vehicles with conventional gasoline engines, Toyoda said in an interview in Beijing in June.
.
China's gasoline price, controlled by the government, has risen to 3.66 yuan a liter, or $1.66 per gallon, this week.
.
Making the Prius in China will also push Toyota past Honda in terms of market share. Honda, which makes gasoline-electric versions of its Civic and Insight sedans, will introduce a hybrid model of the Accord in the United States this month, but has no plans to produce hybrid vehicles in China.
.
China reduces car forecast
.
China cut its forecast for passenger car production this year because sales have been rising at a slower pace and most carmakers will not meet their output targets.
.
Chinese carmakers are likely to make 2.39 million passenger cars in 2004, compared with the previous forecast of 2.82 million units, the National Bureau of Statistics said on its Web site. Production rose 83 percent last year to 2 million units, the China Association of Automobile Manufacturers said.
.
Bloomberg News TOKYO Toyota Motor, the world's largest producer of gasoline-electric vehicles, said Wednesday that it would assemble its hybrid cars in China in response to Beijing's effort to develop more fuel-efficient models.
.
Japan's largest automaker will assemble kits of the Prius hybrid car in Changchun, in northeastern China, with FAW Group, said Shigeru Hayakawa, a Toyota spokesman. The project marks the first time Toyota will build hybrid cars outside of Japan.
.
Toyota will also license the engine technology to FAW. It already provides hybrid technology to Nissan and Ford, but neither Ford, Nissan nor General Motors will release hybrid models until at least 2005.
.
Toyota's decision to bring its most advanced technology to China may win the carmaker government support as it seeks to catch up with Volkswagen, General Motors and Honda in the world's fastest-growing auto market. Toyota wants to increase its share of China's vehicle sales to 10 percent by 2010, from 3 percent now.
.
"This will help Toyota raise its profile in China, further reinforcing its image as the leader in environmentally friendly technology," said Yoshio Inamura, a manager at Tokyo-Mitsubishi Asset Management.
.
The carmaker currently makes all of its hybrids in Aichi Prefecture, in central Japan. It is expanding production abroad to take advantage of increasing demand as oil prices have surged. Toyota officials declined to say how many units of the Prius the company will produce with FAW.
.
The Prius, which sells for about $20,000 in the United States, is one of Toyota's most popular models. The carmaker may also start assembling hybrid models, including the Prius, at its North American factories, Hayakawa said.
.
Toyota makes Vios and Corolla cars in China and assembles eight other models under license, including the Land Cruiser sport utility vehicle.
.
The carmaker said this month it would form a $461 million venture to make Camry sedans in Guangdong Province, in southern China, with Guangzhou Automobile Group.
.
"We hope to share new technology with Chinese consumers, and we want to make more of a contribution to the development of the Chinese automobile industry," Akio Toyoda, senior managing director at Toyota, said at a press conference in Beijing. "We believe that China will become the No.1 automobile market in the world."
.
Prior to production in China, Toyota will export the Prius there and sell it through Changchun FAW Fengyue Auto, a venture with FAW.
.
Fengyue has been making Toyota's Land Cruiser 100 models under license since last year.
.
Fuel-efficiency tests conducted in China showed that the Prius was 40 percent more efficient than vehicles with conventional gasoline engines, Toyoda said in an interview in Beijing in June.
.
China's gasoline price, controlled by the government, has risen to 3.66 yuan a liter, or $1.66 per gallon, this week.
.
Making the Prius in China will also push Toyota past Honda in terms of market share. Honda, which makes gasoline-electric versions of its Civic and Insight sedans, will introduce a hybrid model of the Accord in the United States this month, but has no plans to produce hybrid vehicles in China.
.
China reduces car forecast
.
China cut its forecast for passenger car production this year because sales have been rising at a slower pace and most carmakers will not meet their output targets.
.
Chinese carmakers are likely to make 2.39 million passenger cars in 2004, compared with the previous forecast of 2.82 million units, the National Bureau of Statistics said on its Web site. Production rose 83 percent last year to 2 million units, the China Association of Automobile Manufacturers said.
.
Source:Bloomberg News