Hyundai Motor, South Korea's No. 1 automaker, announced plans to start mass producing hybrid vehicles in 2009, with the first mass produced model to be a compact sedan, known as the Avante.

The company has already produced about 2,800 compact hybrids for government agencies as part of various pilot projects.

"The importance of developing futuristic, environmentally-friendly cars is increasing for sustainable growth," said Chung Mong Koo, chairman of Hyundai. "Therefore, technology for advanced cars, like the hybrid, is imperative."

"We also plan to produce a small fleet of fuel cell electric vehicles from 2012."

Hyundai said it entered the environmentally-friendly auto market in October 2004 when it supplied the government with 50 Click hybrid cars.

Since then, Hyundai and Kia, an affiliate of Hyundai, have supplied the government with 350 hybrid cars in 2005, including the Verna model.

Hyundai said the numbers increased to 730 cars in 2006 and 1,682 cars in 2007.

The company said the new Avante model would be a liqufied petroleum injection hybrid, using both liquefied petroleum gas and electricity.

In 2010, Hyundai said it plans to introduce mid-sized hybrids that use gasoline and liquefied petroleum gas.

For fuel cell vehicles, the company said it plans to expand a demo fleet of fuel cell cars to 500 units by 2010, including mid-to-large size SUV's, then establish a small production system to begin mass production from 2012.