Car manufacturer Toyota Australia confirmed on Friday that its Altona vehicle manufacturing plant stopped production due to a workers' strike calling for a pay increase.

It was said in a statement that the Australian Manufacturing Workers Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia's members have taken protected industrial action in the form of a 24 hour stoppage.

The work stoppage affected the Altona manufacturing plant and Toyota Parts Centres in Melbourne and Sydney and involves over 3,000 workers.

"The company had offered a wage increase proposal of 11 per cent over 39 months in late July and yesterday following the Unions' request, offered three options for a 7 per cent increase over 2 years plus a bonus. All offers were rejected by the Unions," Toyota said.

The company expressed disappointment over the strike because it "believes its offers have been fair and reasonable."

Toyota Australia said it is still willing to continue discussions with the Unions and employees to achieve an agreement.

Acting national secretary for the vehicle division of the Australian Manufacturing Workers' Union Dave Smith told the Australia Associated Press the employees have not had a pay increase since early last year.

"It's been close to 17 months since the guys last received an increase so when the company puts one per cent on the table it's a hard offer for them to sell," Smith said.

The Altona plant produces the 4-cylinder Camry, Hybrid Camry, and 6-cylinder Aurion models.

More than 3,300 employees build 559 cars per day intended for domestic and export customers.

The company produced more than 119,000 vehicles in 2010. The Melbourne and Sydney Parts Centres distribute Toyota parts and accessories nationally.

"Toyota Australia deeply regrets any inconvenience caused to its valued customers, suppliers and dealers who are impacted by this action," it siad.