The cleaner, greener Toyota Camry is the first market-ready hybrid car to be completed at Toyota's Australian headquarters at Altona, in Melbourne's west, Toyota spokesman Glenn Campbell told reporters.
Dignitaries at the event will include federal and Victorian government representatives at Toyota Motor Corporation executive vice-president Yukitoshi Funo, who is visiting from Japan.
Other hybrid Camrys have been produced under a pilot program operating at the Altona factory since August, Campbell said.
The car is powered by a 2.4-litre four-cylinder petrol engine combined with an electric motor that kicks in when the car is cruising.
The car's whole powertrain, including the hybrid engine, is imported from Japan.
Toyota says the car will use about 30 per cent less petrol than a standard Camry, with estimated average fuel consumption of 8.8 litres per 100km on a combined city and highway cycle.
The car, developed for Australia under the federal government's $500 million green car fund, will be built alongside the standard four-cylinder Camry and six-cylinder Aurion sedans.
Toyota hopes to build 10,000 hybrid Camrys a year in addition to production of the standard Camry and Aurion.
It also complements Toyota's range of hybrid vehicles, including the Prius and selected models from its upmarket Lexus brand.
The hybrid car is due for release in February next year.