The continued success of Toyota's Prius hybrid model has helped to push up the company's profits.

Operating profit at the firm rose by 14 per cent during the final quarter of 2005, Toyota revealed, with demand for its hybrid models helping to ensure continued sales growth during the three-month period.

Toyota is tipped to overtake US firm General Motors (GM) as the world's largest automaker later this year and the company is hopeful that it can increase sales of its Prius model to one million per year by the end of the decade.

Hybrid vehicles are becoming increasingly popular across the world as they meet the tough emissions standards which are now being applied by many countries.

In the US, for example, the Prius is proving popular because of the various tax breaks offered to buyers in different states, thanks to its clean energy technology.

Toyota is looking to capitalise on this demand in the US market and has recently announced plans to manufacture a second hybrid model, the Camry, in the US.


Ÿ Adfero Ltd