Japan's Takara "Toys" With Electric Car Drive

TOKYO, Jan 15, 2003; Yuka Obayashi writing for Reuters reported that Takara Co Ltd, the Japanese toymaker known for its hit Beyblade spinning top, plans to move its production of electric vehicles into higher gear this year with the launch of a new model aimed at adults.

Japan's second-largest toymaker said on Wednesday it will launch the new one-seater electric car, the "U", in May with a price tag of 1.09 million yen ($9,225) and a sales target of 3,000 units in the first year.

The car, with an eight-hour battery charge giving it an 80-km (50-mile) range, can be driven on the road and has many of the trimmings available in normal cars, including roof and trunk space.

Buyers have the option of adding a car navigation system, a surf-board rack, and a basket for carrying pets.

"Our electric cars have won a reputation as environmentally friendly products. We are now aiming to provide vehicles which fit the needs and interests of each individual," Takara President Keita Sato told a news conference.

The firm has received 300 orders for its first electric car, the "Qi", which was accompanied by a "Choro Q" toy version. The "Qi" carried a price tag of 1.29 million yen.

Both the "Qi" and the new "U" model require a licence, can be charged from an ordinary electric socket, and can reach speeds of 60 km per hour.

Electric vehicles have so far failed to take off because of their limited driving range and long recharging times, but Takara aims to focus on niche buyers who only use cars for short journeys.

The cars are part of the company's so-far successful strategy of developing toys for adults -- including karaoke systems for the home -- to offset a fall in sales of children's toys resulting from Japan's shrinking birth rate.

"If we sell 1,000 cars, the business will turn profitable. Sales of 3,000 units will bring a decent profit to Takara group," said Shuichiro Tanaka, director at Choro Q Motors.

Choro Q Motors is the joint venture Takara set up with Cox Inc, a car tune-up specialist, to make the vehicles.

In April, Takara will launch the "tu" motorbike, which can be folded in half and used as a bicycle. The product will sell for 190,000 yen and the company aims to sell 3,000 units in the first year.

Tanaka said the company hopes to have 150 dealers to sell and handle maintainence for 'U' cars and 300 dealers for the 'tu'.

Shares in Takara showed little reaction to the news.

The stock closed down 0.51 percent at 980 yen, compared with a 0.69 percent rise in the benchmark Nikkei average.

Shares in Takara have gained nearly 20 percent over the past three months, compared with a two percent drop in benchmark TOPIX index <.TOPX>. The rise was in part supported by upbeat Beyblade sales overseas.