Toyota to double hybrid-vehicle production

Tokyo July 5, 2005; The Asahi Shimbun reported that Toyota Motor Corp. will double its production of gas-electricity hybrid vehicles to 500,000 in 2006 to meet the rising global demand, especially in North America, company officials said.

Toyota, the leader in the field of hybrid technology, expects demand for such vehicles to increase amid rising oil prices and improved performances of the autos.

The increase in production will focus on the Prius, Toyota's main hybrid car, as well as sport utility vehicles (SUVs) Harrier and Kluger, the officials said.

But by the end of 2006, Toyota will add hybrid versions of its luxury sedans sold under the Lexus brand.

Toyota affiliates in charge of making hybrid-vehicle parts, such as batteries, have reinforced their manufacturing facilities, making it much easier for Toyota to obtain key components of the gas-electricity cars, the officials said.

According to the officials, Toyota will start manufacturing a total of 12,000 hybrid Harriers and hybrid Klugers a month at Toyota Motor Kyushu Inc.'s factory in Fukuoka Prefecture from September, an increase of 50 percent.

The Tsutsumi Plant in Toyota, Aichi Prefecture, will increase production of the Prius by 20 percent to 30 percent.

The hybrid SUVs have become very popular in North America since their introduction there in March this year.

But consumers still have to wait three to four months to receive a Harrier.

Global demand for hybrid vehicles has grown so much that Toyota will start overseas production of the cars next year for the first time, the officials added.

The company intends to produce several thousand Prius cars a year at its factory jointly established with China FAW Group Corp. in Changchun, China. Toyota will also build 50,000 hybrid versions of the Camry annually at its factory in Kentucky starting in 2006.

In 1997, Toyota's Prius became the first commercial hybrid vehicle sold on the market, followed by Honda Motor Co.'s Insight in 1999.

Ford Motor Co. started selling hybrid vehicles in the summer of 2004.

Sales of Toyota's hybrid cars reached about 135,000 in 2004, while Honda sold about 28,000 such cars.