Toyota planning a cheap Yaris gasoline-electric hybrid

Toyota has been pretty worried about the 2010 Honda Insight hybrid that is priced lower than the current Toyota Prius and will definitely be priced lower than the 2010 Prius. With competition heating up, Toyota has decided it will produce a new small hybrid vehicle that will be priced lower than the Insight.

According to Akihiko Otsuka, chief engineer of the redesigned 2010 Prius, Toyota is producing a small gasoline-electric car that will be a spin-off of the Toyota Yaris.

“We are developing a low-priced hybrid vehicle like Honda’s Insight,” Otsuka told Automotive News. “We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz and Yaris.”

Of course, it’s not a mystery that the Honda Insight Hybrid is much bigger than the Yaris.

Otsuka did not say when the Yaris hybrid will arrive but Nikkei business in Japan says it could arrive by early 2011.

– By: The Daily Auto Editor