Japanese car giant Toyota has looked to distance itself from claims it will build new Auris cars at its South Derbyshire plant if the Government ties down a transitional Brexit deal.

News agency Reuters reported that the car-maker would make a final decision by the end of this year, based on information from two unnamed sources who are said to be familiar with the matter.

Toyota already makes Auris and Avensis models at the Burnaston plant, and has now dismissed the Reuters report saying that there is no imminent investment decision.

Ever since last year's Brexit vote there has been continued speculation about the future of British-based car factories, including Toyota's site next to the A38.

The majority of cars built at the South Derbyshire factory are exported to mainland Europe tariff free. However, when Britain leaves the EU, car exports could be subject to a 10 per cent tariff, presenting a challenge to competitiveness.

Earlier this year, fears that Toyota was considering its future in the UK were calmed when it announced it was investing £240 million to improve its production processes at Burnaston.

The announcement came after the firm was apparently handed written guarantees from the Government that car exports from Britain would not attract duty.

But last month, the firm's executive vice-president Didier Leroy warned that plans to upgrade Burnaston could be at risk of collapsing as a result of the Government's position on Brexit.

Speaking at the Frankfurt Motor Show, Mr Leroy was quoted as saying there was a "big question mark" over Toyota’s future spending in the UK, due to a shift in the Government’s position on Europe.

Toyota quickly moved to attempt to ease fears over the plant’s future by insisting the £240 million factory upgrade was already under way and it was here to stay.

In terms of the Auris, the Burnaston plant has been manufacturing that model since 2006. In 2015, the factory, which in December will mark its 25th anniversary, successfully secured the right to produce an all-new version of the Avensis and an updated Auris.

Reuters sources claim that production of the current generation of Auris hatchbacks made at Burnaston is due to end in around 2021, but firms make model decisions up to three years in advance partly to organise supply chains.

And the sources claimed that it was "highly likely" that the next-generation Auris would be built in Britain.

But in a statement, Toyota said: "Toyota announced investment upgrades for its vehicle plant at Burnaston some time ago, which shows we are doing all we can to ensure our UK operations are as competitive as possible.

"The company's position on Brexit has remained consistent since the UK referendum – that a competitive environment for the UK automotive sector must be maintained in the future.

"This means continued tariff and barrier free market access between the UK and Europe that is predictable and uncomplicated.

"There are no imminent investment decisions to take on our UK manufacturing businesses. With regard to specific models, Toyota has never commented on future production plans as a matter of course."