Australia's first locally-made hybrid car will not get the necessary upgrades to earn it a five-star rating for safety -- despite being built with the assistance of $35 million from taxpayers.

Indeed, the Toyota Camry Hybrid, released in Melbourne this week and now on sale to fleets and private buyers nationally, is the only remaining locally-made sedan with a four-star safety rating.

The regular four-cylinder Camry range also will not get the upgrades necessary to achieve a five-star safety rating, the company said.

All other sedans made locally by Ford and Holden have a five-star safety rating according to the independent crash test authority ANCAP.

It is a significant anomaly given that, due to Occupational Health and Safety regulations, many government and business fleets now take safety ratings into account with their fleet purchasing decisions.

"Our current expectation is [the Camry hybrid would earn] a four star [safety] rating," said Toyota senior executive director of sales and marketing, David Buttner.

"At this juncture, with this current generation vehicle, frankly, to get a five star [safety] rating we'd need to do two things. We'd need to have the seatbelt warning lamp and we'd need to have the driver's knee airbag.

"[The Camry hybrid] due to the design and the componentry behind the steering column, is not possible to fit the driver's knee airbag."

The Toyota Aurion V6 sedan, which shares its core structure and some body panels with the Camry, and is built on the same production line at Altona on the outskirts of Melbourne, was upgraded to a five star rating last August when a seatbelt warning light was added.

When asked if Toyota would make a Camry hybrid available for testing by ANCAP, Mr Buttner said: "That's a decision for ANCAP".

It is unlikely the Camry will be upgraded to a five star safety rating until an all-new model arrives in two-and-a-half years.

Toyota Australia has deemed changes to the current car would be too expensive, despite receiving significant financial assistance from the Federal Government towards the production of the new hybrid Camry.

ANCAP (the Australian New Car Assessment Program) was established in 1992 to act as an independent guide to -- and watchdog for -- vehicle crash performance.

It does not have the power to ban vehicles but it attempts to give customers more information about the differences in occupant protection each car offers.

It is funded by insurance companies and motoring authorities in each state and territory in Australia, as well as those in New Zealand.

To see how the Aurion and Camry compare go to www.ancap.com.au

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