By Daniel Leussink and Maki Shiraki

TOKYO (Reuters) -Toyota Motor Corp said on Friday it aims to introduce 10 new battery electric vehicle models by 2026 - a long awaited ramp-up in an area that the Japanese automaker has been slow to embrace.

Toyota will also set up a new, specialised unit to focus on next-generation battery EVs, senior executives said at a briefing, in an apparent response to widening concern that it is losing out to Tesla (NASDAQ:) Inc and other rivals.

Investors have long argued that Toyota has not been fast enough in developing a battery-powered vehicle line-up, instead favouring hybrids like its pioneering Prius.

Toyota has countered that a mix of options - including gasoline-electric hybrids, makes more sense for its global customer base.

New chief executive Koji Sato said Toyota would speed up in battery electrics but added that hybrids would remain an important pillar of its business.

"In the next few years we will expand our line-up in the important battery electric category," he said, adding the company would take a "practical approach" to popularising electrified cars that included hybrids.

Toyota is targeting annual production of 1.5 million battery-powered cars by 2026, Chief Technology Officer Hiroki Nakajima told the briefing.