Toyota Has decided to offer its gasoline-electric hybrid technology system to guangzhou Automotive Group, its joint venture partner in China, the first time it has offered core hybrid technology to a foreign company, the Nikkei reported On October 16.

The Blue Nexus, which developed and supplied the hybrid vehicle drive system, has reportedly reached an agreement with GAC on technology transfer. The Japanese company has also agreed to supply Geely with the technology, the Nikkei said, citing people familiar with the matter. Toyota already shares hybrid technology with Japanese carmakers Mazda, Subaru and others before the transfer.

       Hybrid cars are currently the same in China as gasoline-powered vehicles, but hybrids will be included in the environmental protection category under new emissions standards starting next year, providing a boost for Toyota, which has the advantage of hybrid technology, and prompting more Chinese automakers to pay more attention to hybrid technology, the Nikkei said.

       In May, Toyota officially announced that it had sold more than 15 million hybrid cars worldwide.

      According to the data, GaC Toyota sold a record 1.62 million vehicles in 2019, accounting for 6 percent of the domestic auto market. Faw Toyota sold 738,000 vehicles in 2019, missing its target of 745,000. Up to now, the total sales volume of GaC Toyota twin Engines in China has exceeded 300,000 units.

      So far this year, Toyota has tried to boost its market share in China by improving the new energy product camp, According to The Nikkei.

     Not only Toyota but Also Nissan is beefing up its hybrid business in China. President and CHIEF Executive Makoto Uchida has said China is nissan's core market and that it will introduce seven new models, including its Ariya and hybrid E-Power models, into the country by 2022.

       Hybrid cars will account for 26 per cent of global car sales by 2030, up from 7 per cent in 2020, according to LMC Automotive, a UK-based consultancy. New European emissions regulations are also expected to stimulate demand for hybrid cars. As emissions regulations tighten in Europe and America, the proportion of hybrid and pure electric cars will rise.

      Given a series of changes in the car industry, the survival of Japanese carmakers will depend on their ability to develop competitive pure electric cars while hybrids remain popular, the Nikkei said.