Global Car
Industry
- Losses widen at struggling Saab
- Land Rover confirms new Defender
- BYD shares drop on profit outlook
- Toyota-Ford in hybrid SUVs deal
Toyota is
planning to manufacture key components for its hybrid cars outside Japan for
the first time, in a bid to boost sales.
 |
| Toyota is a pioneer in hybrid car technology and more environmentally friendly cars |
It will
start making parts at its research and development facility in China to cater
to growing demand from the mainland.
China is
one of the world's biggest polluters but sales of hybrid vehicles are expected
to grow steadily in coming years.
Toyota is
the world's biggest carmaker.
"Everybody
recognises that China is going to be a very important market for all car
manufacturers," Paul Nolsco, a spokesperson for Toyota, told the BBC.
"Given
the scale that we hope to achieve in China, it makes more financial sense to
make these parts there", he added.
The company
said it is likely to manufacture electric motors and batteries at its Chinese
facility, but a final decision was yet to be made.
'More
affordable'
China was
also the first country outside Japan where Toyota started to assemble and
produce its Prius hybrid cars.
However,
the key components for those cars were manufactured in Toyota's Japanese
factories and then sent over to the assembly lines in China.
Analysts
said that had pushed up sale prices in China.
"That
car basically flopped as the parts were too expensive," said Christopher
Ritcher of CLSA Asia-Pacific Markets. The Chinese production of the Prius was
eventually suspended by the company.
Mr Ritcher
said Toyota's decision to shift the manufacture of these parts to China would
result in cheaper parts and eventually translate into better sales.
"By
making hybrids more affordable they can try and capture some of the market
share and make this an attractive concept for consumers," he said.
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