By River Davis

 

TOKYO--Toyota Motor Corp. President Koji Sato said electric vehicles should be produced locally in markets like China and the U.S. where the auto maker is working to strengthen its sales of battery-powered vehicles.

"With EVs, increasing productivity is a very important factor," Mr. Sato said, speaking with reporters in Tokyo on Friday. Toyota's idea is to keep supply chains compact, and by doing so, lower logistics and procurement costs, he said.

"In regions where we are speeding up our operations, there is a need to boldly localize production," Mr. Sato said.

He said this was in keeping with Toyota's longstanding principle of developing and producing cars close to where the company's customers are. He said the principle applies to China, the U.S. and other major regions.

 

Write to River Davis at River.Davis@wsj.com

 

(END) Dow Jones Newswires

April 21, 2023 06:50 ET (10:50 GMT)

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