Toyota Motor Thailand will rehire about 500 workers at its Gateway plant in Chachoengsao to increase production of its passenger cars, says Wichien Emprasertsuk, a senior vice-president.

The workers were among 2,000 subcontract staff who were laid off by the company late last year, when auto sales at home and abroad plunged as the global economy worsened.

Car production at Gateway will be increased through the reintroduction of a second daily shift at the plant.

"Bringing back the workers has nothing to do with the economic situation or the improving export market. It is related to the domestic market's outlook which is not as bad as the forecasts," Mr Wichien said yesterday.

Earlier the industry forecast that domestic car sales would fall by 30% this year, but first quarter sales dropped by only 17% over the previous year.

Toyota and other automakers trimmed their production to suit the initial demand forecasts, but Toyota said its cars are now in short supply with back orders waiting one or two months for delivery.

Toyota's average monthly sales comprised 1,200 Camry models, 4,000 Vios models and 700-800 Yaris units, when the industry was healthy, but its sales dropped close to the market average in the first quarter.

Mr Wichien said overseas orders could not be estimated as exports to many destinations remained unstable because of the worldwide recession.

The number of cars Toyota produces for export at Ban Pho in Chachoengsao remains unchanged from its previous production cuts, which were made in line with declining exports and resulted in some workers being laid off.

However, the country's leading auto manufacturer said it was currently not able to rehire staff at its Samrong plant in Samut Prakan, because sales of pickup trucks had yet to improve.

Yesterday, Toyota introduced the 2.0-litre Corolla Altis to expand its product portfolio to compete with the rival Honda Civic.

Only the 1.6-litre and 1.8-litre Corolla Altis models had previously been made available in the local market.

The 1.6-litre and 1.8-litre models were introduced into the Thai market in January last year. Aggregate sales of the Corolla Altis have reached 37,000 units since the launch.

The new model has a new engine that is currently used in the 3.5-litre Camry and offers many advanced technology features, said Toyota Motor Thailand's senior vice-president.

Three versions of the 2.0-litre Corolla Altis would retail for between 949,000 and 1.184 million baht. The company aims to sell 250 units per month.