Toyota's Scion model has helped drive sales in the US

Japan's Asahi Shimbun newspaper said Toyota could raise prices by an average of 2% to 3% in the US.

The world's second-biggest carmaker unveiled record profits in May, in contrast to the slump in earnings seen at US firms General Motors and Ford.

A spokesman for Toyota said no decision had yet been taken on any price rises.

"As far as the individual prices of our models in the US are concerned, Toyota is always studying our pricing while considering such factors as the competitive environment, costs and profit. But we have not decided on any specific measures," he said.

High demand

Toyota's chairman, Hiroshi Okuda, had previously expressed his willingness to co-operate with US companies, amid concern over growing trade tensions between the US and Japan.

Japanese manufacturers accounted for 30% of the US car market in 2004. Toyota's annual net profits soared 1.17 trillion yen ($11bn; �5.85bn) in May, on the back of higher sales in the US and China.

The firm overtook Ford to become the world's second-biggest carmaker in terms of sales last year.

But as Toyota's fortunes have kept speeding ahead, US rivals GM and Ford have been struggling to keep up.

GM, the world's biggest carmaker, reported a net loss of $1.1bn in the first three months of 2005, largely due to flagging sales and the rising cost of employee healthcare.

Ford reported a 40% drop in first-quarter net profits, to $1.21bn, citing falling US sales and rising prices for raw materials.

Both US carmakers had their debt ratings cut to 'junk' status by ratings agency Standard & Poor's in May.

The Asahi Shimbun report said a rise in Toyota's prices in the US would also reflect increased raw material costs. It said Toyota had no current plans to raise prices in Japan.