Nissan is reportedly considering developing its own hybrid technology for mid-sized and compact hybrid cars, and aims to roll out a model in Japan using that hybrid system in 2011.

A Kyodo news agency report cited sources familiar with the matter.

Nissan currently sells an Altima hybrid using Toyota‘s hybrid technology system in the US and it has already said it plans to launch a luxury gasoline-electric hybrid using its own technology in 2010.

However, the report suggests that Nissan apparently plans to expand its hybrid line-up to mid- and smaller-sized cars in a bid to boost sales, the sources said.

Nissan plans to install a compact and cost-efficient system similar to the one used by Honda which uses an electric motor to assist a constantly running engine, they added.

Unlike Toyota and Honda, Nissan is looking to develop pure electric vehicles, which it plans to launch in Japan and the United States in fiscal 2010, and has placed zero-emission EVs at the heart of its long-term strategy.