Toyota Motor has said it is on on track to sell more than 900,000 vehicles in Europe this year but supply bottlenecks remained a major problem.

"Supply is still a problem. We still don't have enough diesel engines," Takis Athanasopoulos, the executive vice president of Toyota Motor Europe, told Reuters, which noted that the automaker plans to increase production capcity at plants in Britain, France and Turkey with annual European sales expected to reach 1.2 million units annually by 2010.

Athanasopoulos reportedly said no decision had been made on whether Toyota will open a new plant in Russia, its fastest-growing market.

Reuters noted that Toyota last month reported an 11% boost in European sales for the first nine months of the year to a record 715,438 units. Sales growth was higher earlier in the year, with sales increasing as much as 23% in the first quarter.

While many of its competitors are cutting jobs and production, Toyota is expanding, investing £50 million to increase capacity in its United Kingdom operations to 285,000 units, the report said.