China's largest automaker, FAW Group Corp, Wednesday signed a technology license agreement on Prius production with Toyota in Changchun, capital of China's northeast Jilin Province.

According to this agreement, Toyota's Prius hybrid-engine will be produced in China in 2005 for the first time, marking another milestone in the cooperation between FAW and Toyota.

At the signing ceremony, Zhu Yanfeng, FAW's general manager, said it is a major step for the two companies in boosting hybrid-engine technology cooperation, which will help popularize the environment-friendly technology in China's car industry.

Toyota is dedicated to promoting eco-friendly vehicles around the world, and the cooperation with FAW marks the first overseas production of the popular hybrid vehicle.

The total sales of Prius have reached 400,000 units in the world since it was launched into the market in 1997, said sources with Toyota.

(Xinhua News Agency August 5, 2005)