Toyota Motor Corp. will raise its domestic production plan for this year from an initial 3.2 million units to more than 3.35 million, which was the output last year, company sources said Wednesday.

The maneuver is in line with stronger-than-expected demand in the U.S. market.

It will be the first increase in domestic output in two years. Toyota will announce the plan by the end of the month.

Toyota initially expected vehicle demand in the U.S. market would be considerably affected by the Sept. 11 attacks as well as by declines in U.S. stock prices.