Toyota Motor plans a joint venture with a local company in China to produce batteries for the country’s growing petrol-electric hybrid car market, a Beijing-based company spokesman said.
Takanori Yokoi told Reuters the automaker is talking with Hunan Corun New Energy in the southern province of Hunan to jointly produce nickel-metal hydride batteries for hybrid models Toyota plans to start selling in China around 2015.
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According to a notice Corun New Energy filed with the Shanghai stock exchange, seen by Reuters, Toyota and the battery producer plan to set up a joint hybrid battery company in the eastern China city of Changshu.
The joint-venture company, which is expected to be called Corun PEVE (China) Automotive Battery, would be owned 41% by Primearth EV Energy, a joint venture between Toyota and Panasonic, 5% by Toyota’s Chinese unit Toyota Motor China Investment and 4% by Toyota affiliate Toyota Tsusho. The joint venture awaits the usual Chinese government approval.
The China side investing in the venture includes Hunan Corun New Energy and Changshu Sinogy Venture Capital which would own 40% and 10% of the venture, respectively.
Toyota has previously said it was working to design key hybrid components in China to make planned new China-only hybrid models more affordable.
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By GlobalDataThe move comes as Toyota – and other automakers in China, both local and foreign JVs – gear up to try to boost sales of conventional hybrid cars in China in anticipation of changes in China’s industry policy aimed at nurturing demand for “new energy” cars to include conventional hybrids.
Until now, under the current policy, China provided generous subsidies for private purchases of all-electric vehicles and “near all-electric” plug-ins but only limited support for conventional hybrids.
A growing number of industry insiders and experts believe the Chinese government would boost purchase subsidies significantly for conventional hybrids as early as this year, Reuters noted.
Yokoi said Toyota plans to launch in China two relatively affordable hybrid models around 2015. One model would be for and marketed by Toyota’s joint venture with Guangzhou Automobile and the second for the joint venture with FAW.
SAIC – owner of the MG brand and also a GM and VW partner – and BMW JV partner Brilliance Auto are known to be developing hybrids.
Executives at BYD have told Reuters the company plans over the next few years to stop selling petrol cars and sell only hybrid and other new energy models.
