Toyota Motor will start building the Yaris and RAV4 models at Chinese production facilities in 2008, to meet anticipated demand for fuel-efficient vehicles driven by rising oil prices.

Japanese newspaper Nihon Keizai cites the possible introduction by the Chinese government of tax incentives for vehicles with small engines as further justification for Toyota's plans.

Toyota will build 70,000 units of the Yaris annually at its Guangzhou factory, alongside 100,000 units of the Camry. The company is targeting 60,000 units of the RAV4 per year.

Share This Photo X