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Toyota in talks with China's Geely on electrification tech tie-up

This photo taken on April 2, 2018 shows Toyota Motor Corp. headquarters in Toyota, Aichi Prefecture. (Kyodo)

NAGOYA (Kyodo) -- Toyota Motor Corp. is in talks with Chinese automaker Zhejiang Geely Holdings Group Co. on a potential tie-up in electrification technology, sources close to the matter said Friday.

Under the tie-up, the Chinese automaker may install Toyota's hybrid technology in its plug-in hybrid vehicles, according to the sources. A plug-in hybrid vehicle can run on gasoline when electricity starts to run low.

The Japanese automaker could expand its business in the world's largest auto market through the alliance.

"Toyota has been working on electrification technologies with the open policy, but nothing has been decided," said a company official.

The move comes as the Chinese government is promoting the introduction of green cars and will require that a certain percentage of vehicles produced in the country be new energy vehicles such as electric and plug-in hybrid vehicles in 2019.

Geely, one of China's largest privately owned automakers, aims to increase sales of such new-energy cars through the collaboration.

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