TOYOTA is celebrating the manufacture of its 2.5 millionth vehicle in Europe.

Toyota builds the Yaris, Avensis, Corolla and Corolla Verso in Europe and expects to build 565,000 vehicles, 466,000 engines and 198,000 transmissions in the EU this year.

Production comes from six manufacturing plants in five countries with more than 12,000 employees.

By 2005, Toyota will begin production at two new plants, with Toyota Motor Industries Poland producing diesel engines and Toyota Peugeot Citroën Automobile Czech vehicles, a joint venture with PSA Peugeot Citroën located in the Czech Republic.

Toyota expects to sell more than 900,000 vehicles in Europe in 2004 - and 1.2 million annually by 2010.

It has made a series of additional investments to expand its European production base and capacity. This year, Toyota announced it was planning increase annual production capacity at Toyota Motor Manufacturing UK (TMUK) from 220,000 vehicles to 285,000 - Corolla and Avensis models.

Toyota Motor Manufacturing France (TMMF) has also annual production capacity from 184,000 to 210,000 Yaris models. Depending on market demand, TMMF's output could be increased to a possible 240,000 units annually.