Toyota Motor plans to sell an electric vehicle in China sourced from its local partner GAC Motor from next year, according to reports in Japan.
In a move unprecedented anywhere in the world, Japan's leading automaker will allow a car model of an outside brand to be sold in its dealerships as it looks to meet strict new energy vehicle regulations in China.
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Toyota would never have contemplated such a decision just a few years ago but tough new environmental regulations by the Chinese government have forced its hand.
In an attempt to reduce air pollution, the Chinese government requires 10% of new vehicles sold in the country next year to be new energy vehicles, mainly electric vehicles, rising to 20% by 2025.
China is the world's largest new vehicle market with close to 28m units sold last year.
This decision also represents a strong endorsement by a global manufacturer known for its high standards of quality and reliability of a Chinese vehicle manufacturer's product quality.
Toyota dealers in China will begin selling GAC Motor-badged ix4 models by the end of next year, according to the reports. This battery powered car, based on GAC's Trumpchi GS4, is said to have been in development for four years.
GAC Motor has been one of Toyota and Honda's joint venture partners in China for close to 15 years and vehicles produced at its own plants have benefited from these partnerships.
Toyota is also understood to be negotiating a similar EV agreement with its other main partner in China, the FAW Group.
