The move was seen as part of a drive by Japan's biggest auto maker to expandits e-commerce operations, not wanting to lose the initiative in the onlinecar market to independent cyber dealers who could cut into its distributionsystem.

Toyota's Website, Gazoo, now offers online shopping and Toyota has recentlytied up with DigiCube Co Ltd, the provider of online entertainment software,to market game software, music CDs and DVDs through the site.

Under the latest alliance, Toyota will own a five per cent stake in thee-commerce venture, e-Plat, to be set up on April 13 with an initial capitalof 100 million yen ($946,100).

Japan's third biggest convenience store, Family Mart Co, will hold thebiggest stake of 35 per cent, followed by 25 per cent by Circle K Japan Co,and 10 per cent each by Sunkus & Associates, Ministop Co and Three F Co NTTCommunications will own a five per cent stake.

"Toyota will basically play three roles," said a spokesman.

"First we would develop and provide hardware for e-commerce that would fitthe need of the convenience stores. We will also take care of the managementof the in-store multi-media terminals, while providing content to theironline services," he said.

Toyota has already provided car content to some convenience store chains,but this will be the first time it has provided its e-commerce hardwareclout to convenience store chains.

Japan's ubiquitous convenience stores -- in Tokyo there is one every 500metres on average - are gearing up to play a leading role in the developmentof e-commerce in Japan.

The idea is that consumers will buy goods online that are then sent to theconvenience store to be picked up, thereby getting around concerns aboutsecurity when shopping over the Internet as well as the wait for thedelivery man.

The five convenience store chains involved in the deal have already formed aventure to sell music, travel and books online.

Together they have a network around 1.5 times the size of Seven-Eleven JapanCo's 8,000 store network. But the five have lagged in signing up theheavyweight partners compared with Seven-Eleven's allies - dubbed byanalysts a dream team that would include Sony Corp and NEC Corp. Toyota'sparticipation in the venture may help the five launch an attack onfront-runner Seven-Eleven Japan, although few believe Seven-Eleven wouldlose its top slot.Analysts say that the immediate benefits for Toyota wouldstill be marginal with few cars being actually sold directly online inJapan.