Toyota to Produce New Prius in China
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Toyota Motor Corp. will manufacture the third generation of its hybrid model, the Toyota Prius, along with its vital parts in China, said a spokesperson for the company on Sunday.
The decision is said to be a step forward in boosting sales of the environmentally friendly vehicle in what is now the world’s largest car market, and will be the first time that the Japanese automaker has ever produced key components such as motors and batteries for the petrol-electric hybrid in a facility outside Japan.
Toyota Motor Corp. will manufacture the third generation of its hybrid model, the Toyota Prius, along with its vital parts in China, said a spokesperson for the company on Sunday.
The decision is said to be a step forward in boosting sales of the environmentally friendly vehicle in what is now the world’s largest car market, and will be the first time that the Japanese automaker has ever produced key components such as motors and batteries for the petrol-electric hybrid in a facility outside Japan.
“The company has a business policy to expand sales of environmentally friendly cars in China,” said Toyota spokeswoman Shiori Hashimoto, as cited by AFP, adding that production of the car in the country had been approved by Chinese authorities.
The second generation of the Prius had been manufactured in China up till 2009 when operations were ceased. However back then, the key components of the car were still being produced and shipped out from Japan.
Analysts say that the move could be part of Toyota’s efforts to make its business less vulnerable to fluctuations in the yen. The yen has climbed roughly 10 percent against the dollar and other major currencies since last summer.
According to the Nikkei Business Daily, Toyota’s manufacturing capacity in China will be part of a joint venture with China’s FAW Group Corp, a major Chinese automaker.
The car’s major components will be produced at the company’s research and development facility in Changshu, though there has been no indication on which part of China the car would be assembled in. Toyota has also yet to disclose the specific parts that would be made in China.
The Nikkei Business Daily added that while Volkswagen and General Motors also have plans to produce environmentally friendly vehicles in China, these companies have been extremely unwilling to talk about local production of key parts due to concerns over technology leaks.
