Toyota currently imports its hybrid vehicles, such as the Prius car and the Lexus RX 400h luxury sport utility vehicle, from Japan.

Company officials provided no pricing or technical details for the new Camry, the fifth hybrid for Toyota and Lexus, its more expensive line of vehicles.

The Kentucky plant is the company's largest in North America with the capacity to build 500,000 vehicles annually.

Toyota already builds the gasoline-powered Camry, Avalon and Solara vehicles there. Officials said the plant has the capacity to build about 48,000 of the hybrid Camrys a year.

"It means our total Camry volume will be a mix of conventional and hybrid versions and will be done with the addition of a few extra team members, along with our existing workforce," Gary Convis, president of Toyota Motor Manufacturing, Kentucky, Inc, told a news conference.

The regular Camry was the top-selling car in the United States in 2004, with sales of 426,990 vehicles.

Interest in hybrid vehicles has increased with higher gasoline prices, although they are still produced in relatively small volumes.

Toyota's fuel-sipping Prius saw its US sales in April increase 196 percent over the same month last year.

"Hybrids are having a big impact on our sales this year," said Jim Press, Toyota Motor Sales, USA. executive vice president and chief operating officer. "We believe we will be able to sell every one of the Camry hybrids that Kentucky can build."

Press said the company expects no future changes to the Prius -- which markets to a different customer looking for a certain comfort, size and price -- if sales of the new Camry hybrid meets or exceeds expectations.

"The Camry takes it up another level," Press said. "They really complement each other.

Toyota's Lexus RX 400h reached dealerships in April. Its Highlander SUV hybrid is due to go on sale in June and the 2007 model year Lexus GS 450h hybrid sedan is due to go on sale in spring of 2006.