The Financial Times and other media sources report that Geely Group, one of China’s growing indigenous carmakers, is facing legal action from Toyota alleging copyright infringement.

Toyota has reportedly asked Geely to desist from using a logo similar to Toyota’s in its ‘Meiri’ cars. When the company received no response, it upped the ante and started legal action.

According to the FT, the Chinese media reported that the sole dispute between the two companies was the alleged unauthorised use by Geely of a Toyota-trademarked logo. However, a Geely lawyer was also quoted as saying that the Japanese company had accused it of illegally installing engines bought from a Toyota joint venture in Tianjin.

Geely plans to increase its annual sales to 300,000 units by 2005 and to one million units by 2010. Last year, the company sold almost 50,000 cars.

Geely is also said to be in joint venture talks with one of the world’s major carmakers.