Japanese newspaper Asahi has reported today that Toyota could build a Yaris-based hybrid car in France for sale in the European market.
According to the report Toyota plans to launch a hybrid compact for about 1.5 million yen (A$19,300) in Japan in late 2011, broadening its hybrid lineup.
The new hybrid-only model will use the platform and engine of the Toyota Yaris, which will be fully remodelled to suit the Yaris' size.
The new hybrid will also feature a more cost-competitive and fuel-efficient hybrid system than that of the Prius and once built is expected to compete with the hybrid version of Honda's Jazz, which will debut in Japan next year.
Toyota has a goal of selling at least one million hybrid vehicles a year by 2012.