Toyota Motor Corp., which was overtaken by Volkswagen in sales last year, is striking back on the German automaker's home turf.

Toyota is rolling out Europe's first hybrid subcompact and the image-boosting GT86 sports coupe this year in a bid to claw back market share in the region after its sales plunged 41 percent since 2007.

It will further bolster its European business by outfitting its vehicles with diesel engines from BMW starting in 2014.