Toyota planning cheaper, more fuel-efficient hybrid than the Prius

According to Japanese newspaper Yomiuri Shimbun, Toyota Motor Corp plans to launch a cheaper and more fuel-efficient hybrid than the Prius as early as 2011. The car will share key parts with the Yaris and will double the fuel-economy of the Yaris, the report said.

The model, which will be sold in the United States, Japan and Europe, will be priced around 1.5 million yen ($15,650 USD) and will deliver 94 mpg.

Spokeswoman Yoshie Matsuura said she could not comment on future product plans, reports Automotive News.

Last month it was reported that Toyota is working on a hybrid version of the Yaris for 2011. Toyota later denied the reports. Nonetheless, it is believed Toyota is working on something to compete with the upcoming Honda Fit hybrid.

– By: Kap Shah