Toyota, the global leader in hybrid vehicles, will start to source hybrid components in China for its locally produced Corolla and Levin models from next year rather than import them from Japan.
Executive vice president Yasumori Ihara told reporters at the Beijing show that, from next year, Chinese made batteries, hybrid transaxles and inverters will be used to avoid the high import tariffs that have made it difficult to generate hybrid sales. It is the first time that Toyota will build an entire petrol electric hybrid outside Japan.
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The move comes as China is trying to boost sales of hybrid and pure electric vehicles through a system of central and local government subsidies.
Toyota sold 917,000 vehicles in China last year, up 9% on 2012. Of those, 20,400 were hybrids, up from 7,900 the previous year.
Ihara added that Toyota would also introduce 15 new models to China by the end of 2017 as it aims to overtake Nissan and become the third best selling brand in the country.
