Nissan will release a luxury hybrid car in Japan and the United States, a report said on Sunday.

A lithium-ion battery will be used in the Fuga sedan, known as the Infinity M in the United States, the Nikkei business daily said without citing sources.

The hybrid vehicles will come to market in the fiscal year starting April 2010, the paper said.

Nissan, which was slower than rivals Toyota and Honda to embrace petrol-electric hybrids, has also said it will start producing electric vehicles in 2010.

While Toyota and Honda use nickel-metal hydride batteries for their hybrids, Nissan will use lithium-ion batteries, the Nikkei said.

AFP

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