Toyota to make batteries in China
Japan’s Toyota Motor Corp is moving to set up a joint venture with a Chinese company to produce batteries for the country’s fledgling electric-gasoline hybrid car market, a Beijing-based company spokesman said on May 30.
Takanori Yokoi, a Toyota spokesman, said the Japanese automaker is in discussions with Hunan Corun New Energy Co. in the southern China province of Hunan to jointly produce nickel-metal hydride batteries for hybrid models that Toyota plans to start selling in China around 2015.
According to a notice filed by Corun New Energy with the Shanghai stock exchange, Toyota and Hunan-Corun plan to set up a joint hybrid battery company in the eastern Chinese city of Changshu.
The joint-venture company, which is expected to be called Corun PEVE (China) Automotive Battery Co., would be owned 41% by Primearth EV Energy Co., a joint venture between Toyota and Japan’s Panasonic Corp., 5% by Toyota’s China unit, Toyota Motor China Investment Co., and 4% by Toyota affiliate Toyota Tsusho Co. The joint venture is pending approval by the Chinese government.
Toyota previously said it was working to design key hybrid components in China to make those China-only hybrid models more affordable.
The move comes as Toyota and other automakers in China, both Chinese and foreign, try to kick-start sales of conventional hybrid cars in China in anticipation of changes in China’s industry policy aimed at nurturing demand for “new energy” cars to include conventional hybrids.
Until now, under the current policy China provided generous subsidies for private purchases of all-electric battery vehicles and heavily electrified “near all-electric” plug-in hybrids, but only limited support for conventional hybrids. A growing number of industry insiders and experts believe the Chinese government will boost purchase subsidies significantly for conventional hybrids as early as this year.
Yokoi said Toyota, which has bet big on gasoline-electric hybrid technology since the late 1990s when it began selling the Prius hybrid, plans to launch two relatively affordable hybrid models around 2015 in China. One model would be for and marketed by Toyota’s joint venture with Guangzhou Automobile Group Co., one of China’s big state-owned auto enterprises. The other would be for its joint venture with another state-owned automaker FAW Group.
China is warming to gasoline-electric hybrid cars as it tackles an addiction to fossil fuels, and Chinese carmakers are heeding the call.
Automakers like state-owned SAIC Motor Corp. and Brilliance Auto are developing the fuel-saving technology pioneered by Toyota. Executives at BYD Co., a Chinese battery and automaker partly owned by a Warren Buffett company, have told Reuters that the company plans over the next few years to stop selling gasoline-fueled cars and sell only hybrid and other new-energy cars.
The Chinese companies investing in the venture include Hunan Corun New Energy and Changshu Sinogy Venture Capital Co., which would own 40% and 10% of the venture, respectively.
(May 31, 2013)