Toyota on Wednesday said it would hire 1,600 temporary workers starting next month. Three weeks ago, it had said it would recruit 800.

"The decision to increase the number of contract employees reflects future production plans, against a backdrop of gradually recovering worldwide automobile sales encouraged by tax-incentive and subsidy programmes implemented in various countries," the automaker said in a statement.

Former TMC temps would have priority and take up their posts from the beginning of October to early November.

Toyota stopped hiring temps in June last year as it slashed production to cope with a plunge in demand.

It had about 1,300 temps in Japan at the end of August, according to AFP.

The workers would initially be hired for up to six months, a company spokeswoman told the news agency.

Toyota on Monday said its global production was down 8.7% year-on-year in August to 508,673 vehicles, an improvement on the 20.1% drop in July. Domestic sales rose 9.5% to 92,621 last month.