Toyota will build its new Auris model in the UK at its vehicle manufacturing plant in Burnaston, Derbyshire.

Production of the C-segment hatchback will begin in the new year and will go on sale on February 1 in the UK.

Toyota believes the new model will help it achieve its revised European sales target of 1.2 million units per year by 2008.

Alistair Darling, Secretary of State for Trade and Industry, welcomed the announcement. He said: "This commitment is excellent news for the workforce and another show of confidence in the British car industry. It shows that the UK is a good place to invest and to manufacture."

The Auris will have a four grade model line-up, with three and five-door models available. Full specification and prices will be announced nearer to launch.