Nikkei: Toyota to begin making hybrid components in China to lower costs and boost sales
05 March 2012
The Nikkei reports that Toyota Motor Corp. plans to produce hybrid components in China beginning next year. The company began producing the Prius in China at the end of last year, but components—such as batteries and motor—are shipped from Japan.
Toyota aims to boost hybrid sales in China by bringing down costs through expanded local production.
The target date of 2013 was revealed to local media by Toyota Senior Managing Officer Tadashi Yamashina, who heads the automaker’s R&D facility in China, and confirmed by Toyota’s local unit. Although details have not been disclosed, Chinese media speculated that the batteries will be made locally.
Importing expensive hybrid components from Japan to build Hybrids in China was most ridiculous.
Comm on Toyota, a 5 year old child knows that it should have been the other way around.
Another worthwhile alternative would be to import hybrid components from India to Japan and USA to further lower Hybrids cost.
Posted by: HarveyD | 05 March 2012 at 10:02 AM
@HarveyD,
Reliability and reputation is more important than price when it comes to buying a car. A poorly-made car requiring repair will cost you much more than the cost of repair itself. It will cost you work opportunity as well as compromise your safety. Furthermore, the repair shop will try to milk more and more money out of you, sometimes much more than the repair job is worth.
Made-in-China Prius should be sold mainly in China, while Made-in-USA Prius should be sold in North America, while I'm sure that Japanese shoppers would prefer to pay extra for Made-in-Japan Prius. This is the only way to help improve trade imbalance and to prevent the collapse of globalism.
Posted by: Roger Pham | 05 March 2012 at 03:23 PM
Roger...I do not agree. We have two made in Japan, very well built Toyota and are searching to replace one of them with a made in Japan 2012/13 Camry Hybrid in the next 12 months or so. It may not be a very patriotic thing to say, but we are convinced that made in Japan Toyota are better built and assembled but we are not at all convinced that made in China Toyota are not as good or better than the made in North America models.
We have made in China HDTVs, telephones, cell phones, PC, printers, LEDs, CFLs etc etc and the quality is as good if not better than the locally made units.
Posted by: HarveyD | 06 March 2012 at 06:17 PM
Local content makes sense in a global market, Europe has looked it this way for a while now. You can sell your cars in that country, but a certain amount of the components and final assembly must be done in that country.
I would prefer that situation to the old way of trade tariffs starting trade wars and accusations of "dumping". If you have closer ties in the supply and assembly, your countries and companies work together. This can be a better arrangement for the longer term.
Posted by: SJC | 07 March 2012 at 07:38 AM