South Korea's Hyundai Motor Co. said Monday it may produce rear-wheel-drive luxury cars around 2007 to emulate the success of BMW's premium cars and Toyota's Lexus. The auto manufacturer also plans to churn out hybrid cars later in 2006.

The moves by the country's top auto manufacturer, which controls half the home market, is seen as a step towards its goal of being among the world's top five car producers by 2010.

"We have not decided in what brand the luxury model will be, but rear-drive cars like BMW and Toyota's Lexus will be launched around 2007," a Hyundai spokesman said by telephone.