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Toyota will promote green China, agrees to share hybrid-car technology
2018/09/13 06:00:35
China's Financial News, China News,  Toyota,  Hybrid-car Technology

Sep 13, 2018 (China Knowledge) - Chinese officials have invited Toyota Motor Corp,. <7203:TYO> to share its gasoline-electric technology to help Chinese companies meet stricter emissions targets of China, as shared by people familiar with the matter on condition of anonymity.

Toyota, a Japanese company, was the largest car producer in 2016, according to data supplied by the International Organisation of Motor Vehicle Manufacturers (OICA). The company is one of the pioneers in the hybrid-car manufacturers, with the Toyota Prius introduced in 1997, contributing to the start of the demand for such cars. 

Carbon emission in China can be attributed to transportation, mainly the automobiles. As the world’s largest automobile market, the Chinese government is interested in combating pollution in the country, while cultivating its own domestic companies’ competitiveness and capabilities in producing new-energy vehicles (NEV).

Numerous policies have been implemented by the Chinese authorities in developing domestic NEV market. In order to promote demand and boost the sale to 10% by 2019 central government has introduced tax rebates on the purchase of NEV. The Ministry of Finance hopes that such initiatives can help push support for innovation and development of NEV in China.

However, the development and technical expertise Chinese companies have for the production of NEV such as hybrid and electric cars still lags behind its global competitors. Potential partnership between Toyota and Chinese automakers is seen as a win-win partnership, where the Chinese companies can build on Toyota expertise to develop a domestic NEV market and Toyota can tap on the largest automobile bazaar in the world to boost sales.

As part of the ongoing discussion, Toyota is negotiating sharing its hybrid car expertise and license the technology to Chinese car markers via its battery suppliers Hunan Corun New Energy Co. There are news of potential partnership between Toyota and Chin’s biggest auto-maker company, Geely <0175:HKG>. However, Geely representative has declined to comment on this matter.

The success of the potential partnership will not only allow China to potentially realize its environmental goals but will also reduce the country’s reliance on imported oil.

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