FAW Toyota aims to sell 1,000 Prius units in 2008

Shanghai. April 28 (Gasgoo.com) FAW Toyota Motor Sales Co aims to sell 1,000 Prius vehicles in Chinese market this year despite fierce competition from local brands, company official said.

"FAW Toyota is well prepared for the stiff competition in China's hybrid vehicle market, and will be able to reach the 1,000 sales volume (of Prius) by the end of this year," said Wang Fachang, exective vice president of FAW Toyota.

Besides FAW Toyota, a handful of homegrown automakers, including Chery, Great Wall and FAW, have exhibited their own brand hybrid models respectively at the 2008 Beijing Auto Show. These new entries pose challenges to FAW Toyota, which already saw sluggish sales in this segment in the past year.

FAW Toyota sold only 414 Prius hybrid vehicles in 2007, compared to 2,152 units in 2006. Profit margins on the car are believed to be thinner due to the high cost of the hybrid system.

Earlier in March, FAW Toyota had cut the price of its Chinese-made Prius hybrid car by up to eight percent to help reverse flat sales.

The second-generation Prius hybrid now costs 259,800 yuan (US$36,500), compared with 282,200 yuan before. Price of the Navigation edition of the model has also dropped by 22,200 yuan to 279,800 yuan.
 
This has been Toyota's first price cut on Prius cars since the model started to be produced in Sichuan Toyota Motor Co in 2005.