Toyota to set up China hybrid research center

Toyota (7203.TYO) is planning to open a US$234 million research center in Changshu, northwest of Shanghai, which will focus on plug-in hybrids and all-electric battery car technology, the Wall Street Journal reported. The company said it plans to open part of the center – which will be called Toyota Motor Engineering & Manufacturing (China) Co – by early 2011. The center will have an initial headcount of 200 which will later be raised to 1,000. The central government is currently studying rules aimed at regulating foreign carmakers and technology transfer should they produce electric or hybrid cars on the mainland. A Beijing-based spokesman for the Japanese company however said "more basic" research would be carried out at the new center.