Toyota plans to introduce new sub brands to help its Chinese partners develop new energy vehicles.
Toyota has to JV partnerships in China, one with Guangzhou Automotive Company in the South East and the other with First Automobile Works in the North East. Reports say that Toyota has already been actively working with FAW and Guangzhou to create new sub brands. Both FAW and Guangzhou are already producing Toyota hybrids; Guangzhou manufactures the Camry and FAW produces the Prius.
Even if it’s been a while since Toyota brought its hybrid tech into China, it didn’t receive any of the lucrative and substantial subsidies offered by the government to EV and hybrid buyers in test pilot cities in China.
From January until May, Toyota managed to sell 372,000 vehicles in China, up 26.1% from the same period in 2011. Hitoshi Yokoyama, the company’s spokesman, said this year-on-year jump in May was due to the fact that sales in May 2011 were affected by the earthquake and tsunami that devastated Japan, and therefore production vehicles and key components was paralyzed, which implicitly brought a decrease in sales.