Toyota has announced that they will begin producing the hybrid Prius in China. Production will begin in Autumn 2005. Capacity will be between 2,000 and 3,000 cars per year. Toyota is expected to invest $28.5 million on the project.

Toyota is far behind  Volkswagen and General Motors in sales of vehicles in China. But Toyota is aiming for 10 per cent of China's auto market by 2010.