TOKYO, July 4 (Reuters) - -Toyota Motor Corp plans to start mass producing plug-in hybrid vehicles in 2012, with a projected first-year output of about 20,000 to 30,000 units, the Nikkei business daily reported on Saturday.

Toyota has said it would start leasing 500 plug-in cars globally by the end of this year, primarily for government and corporate use, but has not said when it would commercialise them.

Plug-ins can be cleaner than regular hybrids as they can run purely on electricity but the need for more batteries makes them expensive.

Toyota wants to price its plug-in hybrids at a comparable price to Mitsubishi Motors Corp's all-electric car, which debuts this month to fleet customers in Japan at 4.59 million yen ($47,800) before government subsidies, the Nikkei said, without citing sources.

Toyota's new Prius gasoline-electric hybrid costs less than half that, starting at 2.05 million yen in Japan.

Toyota's plug-ins will be able to run 20-30 km (12.4-18.6 miles) on battery power alone at full charge, the paper said.

Toyota has said the car will be powered by lithium-ion batteries developed and produced by its joint venture with Panasonic Corp, Panasonic EV Energy Co.

A Toyota spokesman said the company could not comment on future product plans.

Toyota's plug-in hybrids would fan competition against General Motors Corp's much-hyped Chevy Volt plug-in, which can also be charged at home through an electric socket.

GM is aiming to launch the Volt -- a showcase vehicle for its effort to reinvent itself after filing for bankruptcy last month -- by the end of 2010 and plans to have a total 14 hybrid models in production by 2012.

(Reporting by Chang-Ran Kim and Nobuhiro Kubo; Editing by Valerie Lee)

((ran.kim@thomsonreuters.com; Reuters Messaging: ran.kim.reuters.com@reuters.net; +81 3 6441 1804)) ($1=96.03 Yen) Keywords: TOYOTA/PLUGIN

(If you have a query or comment on this story send an email to news.feedback.asia@thomsonreuters.com)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.