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Local production could improve Toyota Prius' fortunes in China

The Toyota Prius is the world's most popular hybrid vehicle, but it may take domestic production capabilities for the model to achieve a high level of popularity in China. Japan-based Toyota is aiming to produce an increasing percentage of Prius components in China in order to bring down its price there, Bloomberg News reports. Eventually, the goal is to make all Priuses sold in China in that country in order to avoid the steep 25-percent import tariff. As it is, Toyota sold just 1,400 Prius vehicles in China last year, compared to about 234,000 in the US and 315,000 worldwide. Hindering sales is the fact that the Prius costs about as much as an entry-level Audi in China, where Volkswagen is the country's best-selling automaker. Toyota has been selling the Prius in China for almost a decade but may soon find local sources for the batteries and other hybrid parts for the Prius and Camry Hybrid, Bloomberg says, citing comment from Hiroji Onishi, Toyota's China chief, at the Beijing Auto Show. Part of the problem is that the Chinese government provides less than $500 worth of subsidies for each hybrid sold, compared to about $9,600 for an electric vehicle. While that subsidy may rise as China municipalities take on the country's growing pollution problems, there's lingering concern over spurring sales of a car that's made by competing Japan. Toyota starting making some of its Prius vehicles in China in 2005 but halted production on the second-generation version of the hybrid four years later.

Toyota's car subscription service rewards you for safe driving

Toyota has teamed up with Sumitomo Mitsui Auto Service Company to launch a new car subscription service with gamification elements in Japan. The program is called Kinto, and it'll offer two tiers: the first, called Kinto One, will allow you to drive one Toyota vehicle over a three-year period for anywhere between $420 and $900 a month. When the tier becomes available on March 1st, you can choose from the available Prius, Corolla Sport, Alphard, Vellfire and Crown models. The other tier called Kinto Select will give you the power to drive one of the available Lexus-branded vehicles for $1,630 a month for three years. Now, what truly makes Kinto potentially more interesting than other leasing services is a rewards program that awards points based on how well you drive. Toyota didn't really expound on how it will work, other than saying that it will "award points to customers based on their vehicle usage (such as for safe or ecological driving)." As TechCrunch notes, the assumption is that the vehicle's in-car connected system will come with the ability to monitor your driving. Best thing about it is that the points you earn aren't useless rewards you can't even use: you'll be able to apply them toward payments. Kinto's Select option will be available starting on February 6th, almost a full month before the more affordable Kinto One launches. Both will be available via select dealers in Tokyo on a trial basis, and they won't officially roll out across Japan until summer. The points program won't be available until fall, when Kinto One's options will also expand. Unfortunately, there's no word on whether Kinto will eventually roll out in the US and other markets outside Toyota's home nation.For more information on Vehicle Subscription Services, check out the Complete Guide.Reporting by Mariella Moon for Engadget.Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Lexus eschews production in China over quality concerns

One of the more popular trends in the auto industry is setting up production operations in China. Mainstream manufacturers like Ford, General Motors and Volkswagen have done it, and even luxury marques like Audi, BMW and Mercedes-Benz have or will soon have manufacturing ops in the People's Republic.
One company that isn't building cars in China, though, is Lexus. The Toyota-owned luxury brand still manufactures all of its vehicles in Japan (aside from a few RXs, which are built at a Toyota factory in Canada). According to Tokuo Fukuichi, Lexus just isn't ready to build cars there yet.
"The German Three have a brand image that they have cultivated over the past century in their long history, but Lexus is not in people's minds like that yet," Fukuichi-san told Reuters UK.