Toyota Hybrids May Have Finally Cracked China
- Local production gives Toyota a price edge on hybrid lineup
- Toyota, Honda see hybrids as key to hitting emission goals
A cross-section model of a Toyota Motor Corp. plug-in hybrid vehicle (PHV) stands on display at the automaker's event on the sidelines of the Shanghai Auto Show in Shanghai, China, on April 18, 2017.
Photographer: Qilai Shen/BloombergFor years, Toyota Motor Corp.’s lineup of hybrid gas and electric powered cars faced a great wall of indifference in China. Taxes on imported components drove up the price of franchise brands like the Prius way beyond the budgets of most car buyers, while the government steered subsidies to plug-in electric vehicles.
Toyota may have finally cracked the code. The Japanese automaker’s decision to localize its production of powertrain components such as battery packs and motors in 2015 has allowed it to introduce hybrid versions of its Corolla and Levin brands at the same price as their gas-engine counterparts.