BMW is looking to launch a hybrid car in Japan in mid-2010, the company's Japanese subsidiary has said.

According to news agency Kyodo, BMW will launch a hybrid model on the remodeled 750i luxury sedan. The report said the BWM hybrid will combine a 4.4-litre engine with an electric motor and a lithium-ion battery to improve its fuel efficiency.

It will compete with the Lexus hybrid lineup as well as a luxury hybrid being rolled out by Mercedes-Benz this year in the country.

Honda's latest hybrid, the new Insight, is already on sale in Japan and the company said earlier this month that over 10,000 Insight orders have been placed in Japan already; double the anticipated monthly order rate.