Toyota Motor Corp is considering setting up a Chinese research and development joint venture this year with China's largest carmaker FAW Group, Japanese newspaper Nihom Keizai has reported.

"We are considering it from various aspects but nothing has been decided at this point," Toyota spokesperson Hideki Fujii reportedly said.

The 50-50 joint venture would employ several hundred workers and design vehicle exteriors and interiors. The scale of investment, the schedule and the exact location of the centre have yet to be announced. 
Analysts believe the manufacture of important car parts would remain in Japan due to concerns over intellectual property rights.

Analysts also say that such a joint venture is probably aimed at getting Chinese carmakers to share more of development costs.