Beijing tightens green car subsidy requirements; Toyota plans to make Prius in China

Beijing plans to soon tighten regulations on subsidies for Chinese-made energy-saving vehicles, Bloomberg reported. Xiang Dihai, a director at the Department of Economic Construction within China’s Ministry of Finance, said that cars made by local automakers will receive the subsidy if they have average fuel consumption of 6.3 liters of gasoline or lower per 100 kilometers, down from 6.9 liters today. The subsidy amount will stay at RMB3,000 (US$470) per car. Separately, Toyota Motor (TM.NYSE, TYT.LSE, 7203.TYO) said that it will manufacture its Prius hybrid model and key components in China, in an effort to boost sales in the mainland market. The firm would not comment on which parts it plans to make in China, but it will be the first time Toyota has produced key components outside Japan. Production is said to be via a joint venture with Chinese automaker FAW Group, and is set to begin production in 2012 at the earliest.