Murata Manufacturing Co. will postpone its plan to start selling lithium-ion batteries by at least a year as it plots a strategy to compete in a market that includes Japanese rivals Panasonic Corp. and GS Yuasa Corp.

"If we want to be competitive, we need time to consider what types of equipment the batteries should be used with," said Tsuneo Murata, president of the electronic parts maker, in an interview on Thursday at the company's Kyoto headquarters. "It may be a year or more before we can start."

The company said in 2006 it would start to develop lithium battery technology and ship products for use in power tools and bicycles by the end of this year. Murata, 58, in an interview last year said he wanted to sell cells for hybrid and electric vehicles starting in 2012.

Demand for batteries is expected to increase as consumers in developing markets, particularly China and India, buy more mobile devices, including personal computers and cell phones. Worldwide demand for hybrid and electric cars may drive up sales of power cells for the vehicles by more than 200 times over six years to ¥2.3 trillion in the year ending in March 2014, according to Tokyo-based market researcher Fuji Keizai Co.

Murata's later-than-expected start may mean the company won't be in a position to compete when battery sales start to accelerate, an analyst said.