Toyota said today it expects to produce a record 9.42 million vehicles in 2007.
The forecast 4 per cent rise should see it overtake General Motors as the world's biggest carmaker.
As the Japanese firm lures buyers worldwide with cars that are safe, affordable and fuel efficient, US rivals GM and Ford battle falling market share, closing factories and shedding thousands of jobs.
Soaring fuel prices have battered Detroit's auto heartland, with customers shunning gas-guzzling pickups in favour of cheaper-to-run models from Japanese and South Korean car makers.
Toyota, which makes the Camry, Yaris and popular Prius hybrid cars, has overtaken Chrysler Group in the United States and is expected to pass Ford next year.
In the first 11 months of this year, Ford had a 16.6 per cent share of the US market, while Toyota's share was 15.3 per cent. Ford has said it expects its US market share to slip to 14-15 per cent next year.