Toyota Motor Europe will sell 800,000 vehicles and more next year even if the market dips slightly, the unit's president said in Paris.

The carmaker had cut its forecast after a safety scandal dented its market share earlier this year, but has seen the situation recover since June, Didier Leroy told Reuters.

"We can expect now that we will be able to recover 100% of what we lost versus our initial forecast," said Leroy, who replaced Tadashi Arashima in July as head of the unit, the first non-Japanese executive to hold that post.

"We strongly believe that we will be able to achieve 800,000," he added.

After starting the year with 4.7% market share in Europe, including Russia, Turkey and Israel, there was a big drop from February, before improving to 4.8% in August. Toyota hopes it will be over 4.3% for the year.

Government-backed scrappage schemes boosted European demand last year for carmakers hit by the crisis, but these have either finished or are running out, leaving makers with doubts about the latter part of 2010.

The car market in the region should be similar next year to 2010 as growth in Turkey and Russia offsets declines in western European countries, Leroy said.

"Next year, even if the market decreases a little bit, we should sell more," he said.

Leroy said Toyota Motor Europe ultimately wanted to achieve annual sales of 1m vehicles but would not sacrifice profitability to achieve volumes.

Leroy added that the strength of the yen was putting pressure on TMW as it faces tough competition from Korean carmakers, for example. The currency situation is creating "terrible conditions", he said.

The company is cushioned by producing 50 to 60% of the cars it sells in Europe locally but is also looking at further localisation, Leroy said.