Sydney  - Japanese car-maker Toyota will get a government subsidy for building hybrid petrol-electric Camrys at its Melbourne factory, Australian Prime Minister Kevin Rudd said Tuesday while on a visit to Japan.

Rudd made the announcement in Nagoya, Australia's ABC Radio reported.

Rudd promised 35 million Australian dollars (32 million US) to a programme that will see annual production of up to 10,000 hybrid Camrys from 2010.

The cash hand-out to Toyota came despite advice Canberra commissioned that recommended the government sort out the anomalies in excise duties rather than pick winners in the automotive industry.

A lobby group for the automotive industry also said the subsidy was a mistake.

"You can already buy green cars," John Metcalfe, director of the Australian Automobile Association, said. "The anomaly of tariffs on four-wheel-drives at 5 per cent compared to tariffs of 10 per cent on imported passenger vehicles has not helped either."

Almost a quarter of new car registrations are petrol-thirsty four-wheel-drives. (dpa)