Nikkei News reports that Toyota has decided to start building the long-expected gasoline-electric hybrid version of the Camry in the US sometime in the second half of 2006.

The Camry is the top-selling passenger car in the US, selling 426,990 units in 2004. The car is undergoing a full model change next year.

According to the report, the new hybrid model will initially be made at the Kentucky plant (which manufactures the gasoline versions).

Toyota will begin assembling  the Prius in China beginning this autumn, and may also consider manufacturing the Prius in the US in 2007.