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Toyota plans new hybrid car

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Toyota is reportedly planning to produce a new more affordable hybrid car which it claims will be even more fuel efficient than its popular Prius model.

According to a report from Japanese newspaper Yomiuri Shimbun, the vehicle will have a fuel economy of approximately 85mpg and will be based on the Yaris model.

The car is expected to go on sale in 2011 in Japan, Europe and the US and cost around £9,500.

Toyota has sold more than 1.25 million Prius vehicles since its launch in 1997, making it the world's most popular hybrid.

The carmaker also unveiled plans earlier this month to launch an environmentally-friendly sports car within the next few years allowing consumers to combine fuel efficiency and style.

"We are back where we were 100 years ago, at a point where we must reinvent the automobile," commented the car giant's president Akio Toyoda.

"I want to see Toyota build cars that are fun and exciting to drive."

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