Toyota says in talks with Geely on cooperation in hybrid vehicle tech

Toyota said on Thursday it is in talks with Chinese automaker Geely about cooperation in gasoline-electric hybrid vehicle technology, but nothing has been decided on the matter.

The move comes as Japan's biggest automaker has been increasingly embracing new automotive technologies for future growth, and has also embarked on a strategy to ramp up sales in China, the world's biggest auto market.

Toyota said in a statement to Reuters that it and Geely are currently "communicating with each other" about gasoline-electric hybrid technology.

It was not immediately clear in what aspects of the hybrid technology Geely and Toyota are discussing cooperating.

A person familiar with the matter, however, said that the talks apparently involve a Chinese supplier of electric battery technology both companies have already been associated with but separately. Toyota declined to comment on the specifics of the cooperation.

"Toyota has been conducting the business with the open policy which also applies to the area of electrification technologies. The relationship with Geely (Toyota is exploring) is also based on this open policy," the statement said.

Toyota's response comes after a Chinese media report said Geely was working with Toyota on the conventional hybrid technology. The report said details on the joint effort would be announced soon.

A Geely spokesman declined to comment.

Toyota, which bet big on gasoline-electric hybrid technology in the late 1990s when it began selling the Prius hybrid, has since localized production of conventional hybrid cars in China and has been selling them since 2015 under the Corolla and Levin names.

The company has said it plans to sell plug-in hybrid versions of the Corolla and the Levin next year.