"In the long run, (hybrids) will play a significant role in the model line-up, but for the time being still, the recognition of the hybrid drive is not so high in Europe so we are gradually trying to increase these sales," Arashima said.

"My personal goal is instead of 15,000 (to sell) 20,000."

He was referring to the world number-two carmaker's official forecast of a near-doubling of 2005 Prius sales to 15,000 units in Europe, where motoring journalists voted it car of the year in November.

Hybrid vehicles twin a combustion engine with an electric motor and battery in which the act of braking captures lost energy, enabling it to save fuel and emit fewer pollutants.

Toyota, which seized 5 percent of the fiercely competitive European car market last year including its Lexus premium brand, has forecast vehicle sales in Europe will rise to 980,000 units in 2005, despite a sluggish overall market.

"I think in the five major markets -- Germany, France, the UK, Italy and Spain -- our market share is still very low and we would like to increase these five markets," Arashima said.

The company also aims to boost sales and market share in central and eastern Europe, he said, but is not prepared to sacrifice profit margins for the sake of sales growth.

"We are going to bring new products and the most important thing for us is we are going to have a new diesel engine, which is coming in March (or) April this year," he said.

"A new state-of-the-art diesel engine will help us to increase sales."