(Reuters) - Toyota Motor Corp <7203.T> will launch a car-sharing service through affiliated car-rental shops across Japan, the Nikkei reported on Wednesday.

Car-sharing services, such as U.S.-based Zipcar , have taken off as they let customers hire a car for an hour or less at a time. Hertz has also entered the business.

Toyota's hourly rental rate will be set at around 1,000 yen, with some variations based on region and other factors, the Nikkei reported. It said there would be no sign-up fees or annual membership dues.

Toyota is already operating a pilot program and plans a full launch under a new brand at about 10 affiliated car-rental locations such as Hokkaido, Tokyo and Aichi Prefecture, the daily said.

The company will gradually expand the service nationwide by urging car-rental affiliates to introduce it at their roughly 1,200 locations, the business daily said.

(Reporting by Neha Alawadhi in Bangalore; Editing by Rodney Joyce)