Subaru-brand car maker Fuji Heavy Industries Ltd. plans to begin production in China by finding a local partner in the world's largest auto market, Kyodo News reported yesterday, citing the company's president.
"We've already made the decision to begin (local production) in the future," Fuji Heavy President Ikuo Mori said recently, adding the company is studying who to partner with and which vehicle to produce in China. It may choose a local partner within a year, Mori said.

Fuji Heavy, 16.5% owned by Toyota Motor Corp., saw sales in China soar 86.2% from a year earlier to 31,328 units in the first 11 months of the year and sales are expected to reach 50,000 units next year. The company sold 19,010 vehicles in China last year.

"It's safe to say the need (for local production) is accelerating," Mori said. The company has not yet decided whether to form a joint venture with a local company or to supply technology and consign production, he said.

In September, Fuji Heavy lifted its 2009 China sales target to 34,000 vehicles. Subaru China also said earlier that the Japanese company was mulling a vehicle plant in China to meet the country's growing demand for SUVs.