No surprise, Toyota is eager to begin selling the hybrid Prius in China.

Toyota is counting on the ... hybrid car to help it get an edge in China over Honda Motor Co., which also sells hybrids.

Toyota, which makes Vios and Corolla cars in China, wants to triple its share of the world's third-biggest vehicle sales market to 10 percent by 2010, from 3 percent now. Honda has about 5 percent market share in China.

Toyota is also answering the Chinese government's call to develop vehicles that run on alternative fuel sources. Under new rules announced in its June 1 automotive industry policy, carmakers get tax breaks, subsidies and other financial incentives for developing vehicles that are more fuel efficient.

“When the government said it's welcoming hybrid cars in its policy, it seemed like they were cheering Toyota,” said Toyota Senior Managing Director Akio Toyoda in Beijing.