Japanese car makers are boosting local parts procurement for production in China, with the ratio of locally purchased parts rising to 80% at Honda and Nissan Motor in several years, the Nihon Keizai Shimbun reported on Thursday, according to Kyodo News.
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The move is intended to cut costs amid high tariffs on auto parts averaging more than 10% and intensifying competition in the Chinese auto market, the business daily reportedly said.
While not revealing its local parts procurement rate, Toyota is believed to have raised the local content for Camry sedans it started assembling in Guangzhou this past May to about 70% and hopes to hike the rate at other plants in China, the paper added.
