The Camry has proved a popular model for Toyota

Toyota, which is set to take Ford's number two place in US sales in 2007, saw sales 9.5% up year-on-year, boosted by its Camry mid-sized car and Prius.

In contrast, General Motors (GM) saw sales 16.6% lower and Ford sales fell 19% with both firms suffering a decline in sales to rental firms.

Meanwhile Daimler Chrysler sales rose 3.2%, and Mercedes-Benz sales soared.

The luxury brand saw its sales climb nearly 37% higher in January.

Toyota said its results for January had never been so high, with car sales climbing 13.1% while sales of trucks were 5% higher.

The Japanese car firm's strength continues a trend that has been visible for several months, with US car firms struggling to compete with their Asian rivals which have moved towards more efficient vehicles.

The fall in sales for Ford had been close to expectations, after the firm said sales were likely to drop 20% in advance of the results.

Ford stressed that it was focusing on retail customers and reducing sales to daily rental firms.

"Our customers benefit from this plan because their vehicles' residual values will improve." said the firm.

But Ford warned that the slowing housing market would dent sales of full-size pick up trucks over the next six months.

Brands under the Ford umbrella include Jaguar, which fell 13%, Land Rover which was 11.7% down and Volvo, 7% lower.