(Reuters) - Japanese automaker Toyota Motor Corp (7203.T) is expected to double its production of hybrid vehicles to 1.2 million this year to tap demand in Asian markets, the Nikkei reported.
Toyota plans to launch a hybrid version of its flagship Corolla sedan in Japan as early as autumn next year, the business daily reported, adding that the technology will also be used in its Lexus brand.
Rival Honda Motor Co Ltd (7267.T) has also developed a hybrid technology which will be introduced into its Accord sedan in North America next summer, the Nikkei said.
Toyota is also considering setting up a hybrid assembly plant in Indonesia, having recently brought onstream a similar facility in Thailand, the Nikkei said.
The company expects mass production of key inputs like batteries and motors to help lower costs and give it an edge, the news daily said.
Toyota and Honda sell 70 to 80 percent of their hybrids in Japan and the United States, the business daily said.
Reporting By Neha Dimri in Bangalore; Editing by Sreejiraj Eluvangal