Toyota’s total global output of cars is set to top seven million in 2005, outpacing Ford.

The Nihon Keizai Shimbun, a Japanese newspaper, says Toyota in 2005 is likely to produce 3.4m units, up more than 800,000 from 2003, while manufacturing 3.6min Japan, an increase of more than 100,000.

The report added that Toyota plans to produce 6.7m 2004; therefore achieving the 7m mark in 2005 would represent a rise of nearly a million cars from 2003.

The figures don't include those of Toyota's units, minicar maker Daihatsu Motor and Japan's biggest truck maker, Hino Motors, the newspaper reportedly said.

The paper also said the 160bn yen (£0.794bn) plant, which Toyota is building with PSA Peugeot Citroen Group in the Czech Republic, will begin producing a subcompact developed jointly with PSA that will sell for less than 1m yen (£4,959).