June 11 (Bloomberg) -- Toyota Motor Corp., the world's biggest maker of gasoline-electric vehicles, said it wants to sell its Prius cars in China as rising oil prices make fuel-efficient vehicles more appealing.

``We want to bring the Prius into China as soon as possible,'' Takeshi Uchiyamada, Toyota's senior managing director, told Bloomberg at a conference in Beijing.

The Prius has been attracting customers in the U.S., Europe and Japan after the average price of regular-grade gasoline prices surged 39 percent this year to $2.051 a gallon. Toyota is counting on the so-called 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.

The Prius sells for about $20,000 in the U.S. The car can go as far as 55 miles on a gallon of gasoline, more than double the mileage on a car of comparable size. Honda also installs hybrid engines in its Civic and Insight models. Honda officials declined to say whether the carmaker will also sell hybrid cars in China.

Global sales of the Prius may rise 71 percent this year to 130,000 units, Toyota said.

Tax Breaks

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.

Toyota has started conducting fuel efficiency tests on the Prius in China. Initial tests on four cars in Beijing, Shanghai, Chongqing and Guangzhou showed the vehicles were 40 percent more efficient than vehicles with conventional gasoline engines, Toyoda said.

Toyota shares, which have risen 15.8 percent this year, traded 1.2 percent higher at 4,200 yen, as of 11:20 a.m. in Tokyo.

Top 10

Toyota, which started making the Vios in the world's fastest-growing auto market in 2002, plans to expand its range of models in China and become one of the country's top 10 automakers, Toyoda said, declining to give sales forecasts.

``We've been making the best use of Toyota group companies in China so far, which enables us to become a full- lineup maker,'' he said.

Toyota will open outlets selling its Lexus range of luxury cars in four Chinese cities this year and is preparing to make Camry sedans in a second assembly plant in southern China with Guangzhou Automobile Group Co.

Its compact car subsidiary Daihatsu Motor Co. is selling Terrios small sport-utility vehicle, while Hino Motors Ltd. makes Coaster buses in China.

``Toyota is like a gigantic steamroller,'' said Graeme Maxton, managing director at Autopolis, an automotive consultancy in. ``It doesn't go so fast, but it makes sure that it gets what it needs.''

To contact the reporter on this story: Kae Inoue in Tokyo at kinoue@bloomberg.net.

Last Updated: June 10, 2004 22:35 EDT