Toyota cuts green car price 8% in China

Toyota has cut the price of its Chinese-made Prius hybrid car by 8% to stimulate sales and help it solidify its leading position in China’s fuel-efficient car market, the Shanghai Business Journal reported. GM and Honda are the other leading contenders. The Prius hybrid now costs US$36,532 (RMB259,800), down RMB22,400 on its previous price. FAW Toyota, the Japanese automaker’s joint venture in China, said Monday that the price cut was made possible by more advanced technology that helped cut production costs. The Prius is the world’s first hybrid car powered by fuel and electricity to be put into mass production. The model, which hit the market in 1997, had sold more than 920,000 units worldwide by the end of last year. Toyota launched the Prius model in China in 2005 but said the Chinese market was slow to accept hybrid cars. However, the Chinese government is encouraging automakers to develop environmentally-friendly, fuel-efficient vehicles.