Report: Toyota to make hybrid car parts in China to boost sales

The BBC reports that Toyota is planning to manufacture key components for its hybrid cars outside Japan for the first time.

The company said it is likely to manufacture electric motors and batteries at its Chinese facility, but a final decision was yet to be made...While boosting sales and capturing a larger share of the world’s biggest car market is one of the main reasons behind Toyota’s decision, analysts said other factors may have played a big role as well.

...China’s restrictions on exports of rare earth elements is one of those factors. Some of the rare earth elements are key components hybrid car parts such as batteries. However, China, which produces more than 95% of the world’s rare earth supplies, has imposed strict production and export quotas on these elements, citing environmental concerns. “Rare earths and concerns about their supplies could very well have played a role in this decision,” Vivek Vaidya of Frost & Sullivan told the BBC.