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Toyota to move production to China

In what is seen as a major shift in power in the auto industry, a BBC report is suggesting that Toyota is planning to manufacture key components of its hybrid cars outside Japan for the first time. According to the report, the company is likely to manufacture both electric motors and batteries at its Chinese facility, although a decision has not yet been finalised. The idea behind the move is party to boost sales and capture a larger share of the world’s biggest car market – however, other factors may have played a part too. For example, China’s restrictions on exports of rare earth elements, is seen as one of the factors as these are key components in some hybrid car parts. However, China, which produces 95 per cent of the world’s rare earth supplies, has placed strict production and export quotas on these elements due to environmental concerns.

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Paul Lucas

Filed under: Latest News, Green cars, Hybrid cars, Toyota

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