Fuji Heavy to raise Subaru sales in China via Toyota

Shanghai, June 1 (Gasgoo.com) Subaru-brand car maker Fuji Heavy Industries Ltd. may offer vehicles in China and other emerging markets through its partnership with Toyota Motor, Wall Street Journal reported yesterday, citing a company executive.

Fuji Heavy is focusing on China and Russia as there may be demand for its existing lineup of midsize four-wheel drive vehicles and sports cars. The company has fallen behind its rivals in emerging markets due to a lack of smaller models more needed in those countries.

"It is hard to meet demand in all emerging markets on our own," said Akira Mabuchi, a senior vice president at Fuji Heavy. "It would be natural for us" to source more models from Toyota. Toyota's small-car subsidiary, Daihatsu Motor, now makes minicars and compact vehicles for Fuji Heavy.

Fuji Heavy is targeting China sales of 50,000 vehicles in 2010, after sales in 2009 grew 86% from a year earlier to about 35,000 vehicles. Fuji Heavy's sales volume in China is still well below those of its Japanese rivals.

"We've already made the decision to begin (Chinese production) in the future," Fuji Heavy President Ikuo Mori said recently, adding the company may choose a local partner in China within a year.

Subaru China also said earlier that the Japanese company was planning to build a vehicle assembly plant in China to meet the country's growing demand for SUVs.