Toyota, the world's largest automaker, launched production of Europe's first full hybrid vehicle on Monday at its car factory in Burnaston, in a boost to Britain's battered auto industry.
The first European-made hybrid version of Toyota's Auris hatchback rolled off the production line under the watchful eye of the government's business minister Vince Cable.
"Toyota's decision to make Burnaston the only plant in the world to build the Hybrid Auris is a strong endorsement of the UK as a manufacturing base for the next generation of cars," said Cable, after touring the Burnaston plant.
"It is sending a signal to manufacturers that if you're not in the UK, then you're missing out on all the strengths and skills that the UK has to offer."
The new Auris Hybrid Synergy Drive car, which uses both a traditional petrol engine and an electric motor, will arrive at British car showrooms on July 1.
The model will be assembled at Burnaston, in Derbyshire, while the engines will be produced in Deeside, northern Wales. They are the first hybrid engines to be made outside of Japan.
Production of the Auris car will help safeguard around 400 jobs at the two factories.
"The UK has proved to be a valuable business partner," said Toyota's Motor Europe president Didier Leroy on Monday.
"Building on almost 20 years of manufacturing experience, Toyota's team members continue to deliver the quality, efficiency and flexibility needed to meet the exacting standards of our customers in Europe.
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"A new chapter is opening today as Britain, a traditional origin of industrial innovation, becomes home to the manufacture of the first full hybrid vehicle for Europe," Leroy added.
Katsunori Kojima, managing director of Toyota Manufacturing UK, said the group was "proud" to begin British production.
"It is a proud day for Toyota Manufacturing UK as we celebrate the official start of production of the Auris Hybrid Synergy Drive, yet another premium quality model to be built in Britain," Kojima added.
"To manufacture a world-class vehicle you need a world-class team and the commitment and dedication of our members has been crucial."