Toyota has announced it plans on making at least half the components needed for the hybrid versions of its Corolla and Levin vehicles, which will be sold in China, locally, to save on transportation fees.
Shinichi Matsumoto, Vice President for Toyota Motor Engineering & Manufacturing in China, said the automaker "needs" to reach that level of local content in order for hybrid prices to go down, and to generate more sales in the biggest auto market in the world, according to Reuters.
"My feeling is that unless the local procurement ratio reaches 50 percent, we can't call it 'localized'," said Matsumoto, according to Reuters.
Toyota currently pays expensive transportation and tariff fees for bringing important parts from Japan to assemble hybrid vehicles in China.
"Ultimately, our goal is to localize 100 percent," Matsumoto said.
The VP added that using parts made in China for its hybrids doesn't mean it will be lowering the quality to "pursue higher sales," according to Reuters. The automaker wants to keep the system's quality equal to that achieved in Japan, Matsumoto said.
Toyota said earlier this week it will begin manufacturing and selling Levin and Corolla sedans in 2015 in China with locally made hybrid systems, like the vehicle's motor and battery.
This will mark the first time the company will make hybrids outside of Japan using parts manufactured locally, according to the automaker.
On April 22, the automaker confirmed it has sold 26,800 hybrids in China last year, a 55 percent increase compared to 2012, according to Reuters.
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