(Photo: VCG)

The world's largest car maker Toyota plans to build its premium Lexus cars in China, its Chinese joint-venture partner FAW Toyota confirmed in a statement on Tuesday. 

The move comes as a way to spur growth and narrow its sales gap with its German rivals in China, Reuters reported citing business insiders. 

In 2017, China accounted for more than half of all Volkswagen sales worldwide and more than a third of Audis, BMWs, Mercedes Benzes and Porsches, while Japan’s Nissan and Honda were left behind, ranking only third in the list after VW and GM. 

The local production is expected to bring a major shift to the auto giant thanks to improved China-Japan ties, as well as new Chinese investment rules that might allow foreign automakers to fully own or control a majority of their China operations.

Reuters said Toyota had contemplated moving Lexus production to China before - as far back as 2011-2012. Used to importing models from Japan, Lexus has sold a total of 132,389 cars in China over the past ten months, up 23.8% compared to last year, which makes 2018 the third straight year to break the 100,000 mark.