Japan's biggest car maker Toyota has said it is considering increasing its production facilities in North America to help grow sales there.

"Taking into account market movements and from a wide range of perspectives, we are considering expanding local production in North America, but no decision has been made yet," a Toyota spokeswoman said.

The company made the statement after Toyota's president Fujio Cho was reported on Friday as saying that the firm planned to build a new plant in North America

Last month Toyota showed it was defying the global economic slowdown when it announced a doubling in profits for the April to June quarter.

Closer to the market

The company's redesigned Camry and Corolla cars and Tundra light truck have proved particularly popular in North America.

During the last full financial year, Toyota sold 1.78 million vehicles there, and is now planning to increase production to 1.87 million this year.

Toyota aims to build about three-quarters of the cars it sells in North America.

The company is due to expand its facilities in Indiana in the United States and in Ontario, Canada, but according to the Asian Wall Street Journal Mr Cho wants to build a second new plant in the US.

Tokyo also hopes to expand sales in Europe.

Earlier this year it revealed plans to raise its market share in Europe from 3.8% to 5% by 2005.