Toyota plans to sell about 700,000 European-built vehicles annually in Europe beginning next year.
The Japanese automaker will hit that mark when Toyota and PSA/Peugeot-Citroen's joint venture plant in Kolin, Czech Republic, reaches full production.
The three minicars that will be built at the plant -- the Toyota Aygo, Peugeot 107 and Citroen C1 -- were unveiled in Geneva.
Toyota will consider further increases in European production as it pushes for 1.2 million European sales by 2010, said its top European executive said.
Tadashi Arashima, president and CEO of Toyota Motor Marketing Europe, said that Toyota expects to sell 100,000 units annually of the Aygo minicar assembled in Kolin plant. Toyota has also added capacity elsewhere in Europe, although some of its European production is exported.
Toyota will continue to import vehicles to Europe from Japan, South Africa and Thailand. But, Arashima said, it could add European production if sales grow.
Russian production studied
"It depends on the development of the sales, but certainly we may need to add more production capacity here in Europe," he said.
One European country with high growth potential that could see a Toyota production facility is Russia. "We need to probably build cars there, " said Arashima. "We are seriously considering it," he added.
Japanese press reports have said Toyota could open a plant in St. Petersburg as early as 2006.
According to market researcher JATO, Toyota sold 730,433 vehicles in western Europe in 2004, up 6.5 percent.
Arashima also said:
-- Arjen Bongard contributed