By Jorn Madslien BBC News business reporter at the Frankfurt motor show

The new Yaris is following a model which sold 1.2 million in six years

"Along with the Toyota Aygo, the all-new Yaris will help Toyota to expand sales in the small car market by 50%," says Andrea Formica, vice president of sales and marketing at Toyota Europe.

The company is investing heavily to expand production at its factory in France.

This is at a time when other car makers in France and Germany are moving production out of the eurozone to Eastern Europe, Asia or South America - where production costs are lower.

'On course'

Toyota sold more than 1.2 million Yaris during the previous model's six-year life cycle.

Mr Formica (left) and Mr Dombreval are confident about the future

The firm's market share in Europe is currently 5.4%, following a 4% rise in sales during the first eight months of this year when compared with the same period last year.

So far this year, Toyota has sold more than 650,000 cars.

"With a sales target of 980,000 units for this year, I am pleased to say we are on course to meet that objective," said Thierry Dombreval, chief operating officer of Toyota Motor Marketing Europe.

Hybrid growth

Toyota also expects strong sales of its hybrid Prius.

"Last year we sold 8,200 [in Europe]," said Mr Dombreval.

"So far this year, we have delivered 12,000 units to customers.

"By the end of 2005, we expect to achieve 180,000 sales worldwide, and over 20,000 in Europe."

Toyota also unveiled its third generation Rav 4, which it aims to pit against other sports utility vehicles and people carriers.