Nissan Motor will begin producing the hybrid version of its midsize Altima sedan in the United States in 2006, with the car's engine system provided by Toyota Motor, Nissan president Carlos Ghosn told Kyodo News.

Ghosn reportedly said the automaker will decide annual output of Altima hybrid cars based on demand, but will produce a maximum of 50,000 units per year.

Kyodo said Nissan is expected to assemble the hybrid Altima car in its Smyrna factory in Tennessee, where it currently manufactures the model.

The news agency noted that Nissan signed an accord with Toyota in September 2002 on procurement of a hybrid car engine system from its Japanese rival. Toyota itself plans to produce hybrid vehicles in the United States in the future, the report added.