UPDATE 1-Nissan to sell hybrid vehicles in Japan by 2011-Nikkei

July 17 (Reuters) - Japan's third-largest carmaker Nissan Motor Co (7201.T) aims to begin selling hybrid vehicles based on its own technology in Japan in 2011, the Nikkei business daily said.

Nissan's Serena minivan is likely to be the first model to get the hybrid makeover, Nikkei said.

The company also plans to introduce a compact electric car in Japan and the United States by the end of next year, Nikkei said.

On Thursday, Toyota Motor Corp (7203.T) and Mazda Motor Corp (7261.T) were reported to be in talks over the possibility of Toyota supplying core components for hybrid vehicles to its smaller rival. [ID:nT205470]

Japanese carmakers are under growing pressure to offer hybrid models as demand has increased for gasoline-electric vehicles, which receive tax breaks under a government initiative to promote cleaner cars. (Reporting by Shrutika Verma in Bangalore; Editing by Pradeep Kurup)