TOKYO, Sept 15 (Reuters) - Toyota Motor Corp. said on Wednesday it would start assembling its fuel-efficient Prius hybrid cars in China by the end of 2005 with FAW Group Corp. in a move aimed at opening up a new niche in the fast-growing market.
Toyota, the world's second-largest auto maker, and FAW, China's biggest, have also agreed to consider the possibility of building an FAW-brand vehicle featuring a hybrid system based on Toyota's technology, Toyota said.
The Prius, powered by both a gasoline engine and an electric motor to boost fuel economy, enjoys a strong following in the United States, where customers wait months for delivery.
"With the new agreement, the companies intend to contribute to the promotion of hybrid vehicles in China as well as to the further development of the Chinese automobile industry," Toyota said in a statement.
Toyota makes Vios and Corolla sedans in China with Tianjin FAW Xiali Automobile Ltd., while Changchun FAW has been making Toyota's Land Cruiser 100 model since last autumn.
A Toyota spokesman said it would build the Prius in Changchun with parts imported from Japan.
Output volume has yet to be decided.
Japanese business daily Nihon Keizai Shimbun reported on Wednesday that FAW Group unit Changchun FAW Fengyue Auto Co. would begin making several thousand Priuses a year by 2005.
As demand for cars heats up in China with rising income, the government is keen to promote environmentally friendly cars.
Toyota to build Prius hybrid car in China
Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by DonDNH, Sep 15, 2004.