Toyota to build Camry hybrids in China

Toyota Motor Corp. plans to begin building and selling a hybrid version of its Camry sedan in China in 2010 in anticipation of growing demand for environmentally friendly vehicles, the Nikkei business daily reported yesterday.

Toyota, which leads the auto industry in gasoline-electric hybrid technology, is rapidly ramping up production of the fuel-efficient vehicles to meet growing demand as consumers look to save cash at the pump amid record-high fuel prices.

The company's latest move comes as the Chinese government, which recently boosted gasoline prices, considers giving preferential tax treatment to eco-friendly cars, the paper said.

A Toyota spokesman declined to comment on the report. Its shares gained 1.2 per cent to 5,070 yen as of 0412 GMT, despite a rating cut by Nomura Securities to "reduce" from "neutral".

The newspaper said Toyota plans to manufacture 10,000 cars per year in the southern Chinese province of Guangdong as part of its joint venture with Guangzhou Automobile Group Co.

It said Toyota will first produce the gasoline-powered Camry at the Guangzhou plant's second line next year, and will add the hybrid version the following year.