TOYOTA Motor Corp has cut the price of its Chinese-made Prius hybrid car by up to eight percent to help reverse flat sales.
The move will help Toyota strengthen its market position in China's green car market amid coming challenges from General Motors Corp and Honda, analysts said.
The Prius hybrid now costs 259,800 yuan (US$36,500), compared with 282,200 yuan before, FAW Toyota said yesterday. Its flagship model has also cut its price by 22,200 yuan to 279,800 yuan.
Prius is the world's first mass-produced hybrid car powered by fuel and electricity. The sedan has sold more than 920,000 worldwide by the end of last year since its debut in 1997.
This is Toyota's first price cut on Prius cars since Chinese production began in 2005 in its joint venture with First Automotive Works Group.
An official from FAW Toyota said matured technology had helped to lower production costs.
"The price reduction will help increase competitiveness and boost sales of the eco-friendly model," he said, adding that the Chinese market has been slow to accept the hybrid cars.
The high price and maintenance cost has been the main problem for the model's sales, said Zheng Jun, an auto analyst from CITIC's China Securities Research.
FAW Toyota has slashed Prius' sales target to between 1,000 and 1,500 in China this year, compared with its 2005 goal of 3,000 a year.
The Chinese government has been encouraging car makers to develop more eco-friendly vehicles amid rising awareness of environmental protection and energy efficiency.
Honda started importing its Civic hybrid to China at the end of last year while General Motors Corp will start selling its Chinese-made Buick LaCrosse hybrid sedan this year. Other models include the Lexus RX 400h sport utility vehicle, and China's first hybrid sedan, the Jiexun-HEV, made by Chang'an Automotive Group.
