China’s emission and fuel economy rules are making it tougher for Japan’s Toyota Motor Corp (7203.T) to achieve its target of selling 2 million vehicles a year there by around 2025, the carmaker’s China chief said on Sunday.

Hiroji Onishi, head of Toyota’s China operations, told reporters the company is reviewing its product line-up to clear regulations in China and make money and achieve volume at the same time.

“It’s becoming difficult to meet China’s more and more stringent emissions and fuel economy regulations,” Onishi said ahead of the Beijing auto show, which begins on Monday.

“In order to meet those regulations, we have determined that we need to sell a considerable number of smaller cars and hybrid and other special cars.”

Onishi said on Sunday that Toyota plans to sell heavily electrified, so-called plug-in hybrid cars in China starting in 2018.

Toyota’s sales in the world’s largest auto market in March jumped by 40.6 percent from a year earlier to 100,500 vehicles. That compared with a 6.3 percent year-on-year gain in February.

Car sales growth in China ground to a halt last year as the economy expanded at its slowest pace in 25 years and the stock market slumped.

Sales rebounded beginning in October helped by a government tax cut on small-engined cars which lasts until year-end.

By NORIHIKO SHIROUZU Apr. 24, 2016 on Reuters

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