to one of the world's smallest automobile markets this week.

Mr. Tatsuro Toyoda takes over as president of the Toyota Motor Corporation in September when the incumbent Mr. Shoichiro Toyoda steps down.

Mr. Toyoda, currently Toyota's executive vice president, and his wife headed a 40-strong party of company staff and their spouses.

Meetings to discuss Toyota's future strategy were held at Marriott's Castle Harbour Resort, where the group was staying.

Mr. Toyoda, in an interview with The Royal Gazette , said that strategy did not include imminent commercial production of an electric car, which would be ideal for an island as small as Bermuda.

"We have been working on this for 20 years but there are problems with a good battery and efficient motor for such a vehicle,'' said Mr. Toyoda.

"We don't produce any electric cars on a commercial basis. We've already made some prototype cars and assisted Daihatsu in making an electric car. But we're not ready yet to put one on the market.'' Mr. Toyoda was diplomatic about concerns in the US over the state of the American motor industry, which has been severely hit by the success of Japanese models.

Last year, US President George Bush and some of America's leading car bosses went on a much-criticised visit to Japan to ask for help to revive the American car industry.

Mr. Toyoda said US motor manufacturers were improving their standards all the time.

"The price and quality of American cars has improved very much,'' he said.

"They are more competitive now.'' Even so, more Japanese cars would be sold in the US, said Mr. Toyoda.

"Japanese manufacturers, including us, have built automobile producing plants in the US,'' he said. "Production in the US of Japanese cars will be increasing in the future.'' Although Japan's authorities has put a restriction on the number of cars which can be exported to the US, Mr. Toyoda said the number of completed cars to go from Japan to the US would still increase from what it is now.

In response to growing environmental concerns around the world, Toyota was making several improvements to make their vehicles cleaner and safer, said Mr.

Toyoda.

"Environmental issues are most important, not only to Toyota, but for Japan,'' he said.

"We've put much effort to improve our cars to meet future environmental requirements. Measures have been taken over air pollution, energy saving and safety.'' A new branch of the company had been set up to deal with environmental concerns, he added.

The party of Toyota executives who came to Bermuda also included Mr. Masakuni Iwaki, the company's project general manager, and Mr. Kunio Shimazu, the head of Toyota in North America.

The group arrived in Bermuda last Saturday, with Mr. Toyoda, his wife, and his private secretary flying in by private jet, while the rest of the party came on a scheduled flight. They left yesterday.

On Tuesday evening, Mr. and Mrs. Toyoda and a small party had dinner with former Premier the Hon. Sir David Gibbons at his home in Pembroke.

The Gibbons group of companies owns the Bermuda Company, which is the Toyota dealer in Bermuda.

Other events organised for the group included a trip on the Lady Tamara luxury boat and, naturally, a round of golf at Mid-Ocean Golf Club.

The Bermuda Company's managing director, Mr. David Gibbons, Jr., helped look after the group during their stay, which included a tour of his firm's offices at Church Street East, in Hamilton, where Toyota vehicles are sold.

Mr. Teddy Chapman, a director of the Bermuda Company, said yesterday: "We all feel very honoured such an esteemed group should come to a small place like Bermuda for a convention.

"It will give invaluable publicity to the Island. A story will appear in Toyota's bi-monthly magazine, 50 copies of which are distributed to all their thousands of dealers around the world. It can do nothing but good.'' NEW TOYOTA CHIEF Mr. Tatsuro Toyoda (left) and Mr. David Gibbons Jr. in the local showrooms.