Toyota Plans Cheaper Hybrid System by 2008

Toyota's first hybrid system appeared in the Japan-market Prius in 1997. A much improved Hybrid Synergy Drive system then bowed in the redesigned second-generation Prius in 2002. Toyota will revise the system again with a smaller, lighter battery and greater driving performance for generation three, at which point the Prius' already exceptional fuel economy (reaching 100 mpg in Japan's 10.15-mode fuel cycle) can be expected to take another leap forward.

New technology and increased production rates will let Toyota lower the cost differential over conventional vehicles. According to the Asahi Shimbun, the cost gap will be cut in half as hybrids progressively go mainstream.

The price of Toyota's popular hybrid vehicles, such as the Prius, may be coming down sooner than most people expected
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