Under the agreement, Toyota is required to provide Mazda with the motor, control system and some other main components of its Prius hybrid vehicle which Mazda hopes to market in 2013. Toyota and Mazda are currently working to set the prices of the parts.
The two companies are likely to sign a formal agreement on their deal by the end of the current fiscal year, according to the sources.
The components will be used to produce tens of thousands of Mazda hybrid vehicles annually. A joint corporation set up by Toyota and Panasonic Corp. will supply rechargeable batteries needed to build Mazda hybrid vehicles.
Mazda likely will manufacture its first model by outfitting its compact car, Axela, with the components supplied by Toyota, according to the sources.
Mazda has yet to build hybrid vehicles or electric cars.
