Australia is to become part of the global shift to hybrid cars, with Toyota planning to build 10,000 cars a year at Altona (Melbourne) from the start of 2010, with subsidies from the Federal and State governments.

Prime Minister Kevin Rudd made the announcement here at Toyota's global corporate headquarters today at a joint media conference with Toyota president Katsuaki Watanabe.

Mr Rudd said the Government would invest $35 million from its Green Car Innovation Fund to finance the tooling up for the new model, which will reduce petrol consumption and greenhouse gas emissions by a third compared with a standard Camry.

''This is about helping the family petrol budget and helping to reduce greenhouse gas emissions'', Mr Rudd said. ''A family driving 20,000 kilometres a year will save up to $1000 a year.''

Mr Watanabe said Toyota had decided to add Australia as a location for producing the hybrid Camry because it was confident it would be well-received, ''given the high awareness and concern that Australian people have on the global warming issue''.

''It is our vision at Toyota that early in the 2010s we will increase annual hybrid sales (globally) to 1 million cars a year.''
Toyota now sells less than half that number, mostly as the upmarket Prius, but is also introducing hybrid engines as an option for the Tarago, Lexus and 4Runner SUV vehicles. Later today Mr Watanabe is to announce that Toyota will also start producing hybrid-powered Camrys in Thailand.