Cheaper, more powerful and fuel efficient Toyota hybrids in 2008?

The king of hybrid cars, the Toyota Prius, will offer a third generation hybrid drive for the 2008 model according to reports from Japan. Additionally, the new drive will also be included in the rest of Toyota's hybrids as well, such as the Highlander hybrid, Lexus RX400h, and the soon-to-be-released Camry hybrid.

According to one report, the new hybrid drive will offer new batteries that will be lighter than the current generation and will offer greater performance. The second generation Prius provided a significant increase in performance compared to the first generation, increasing battery power by 1.5 times. Thus far it has been stated that the new drive, "will cut prices for eco-friendly vehicles, reduce fuel costs and slash production expenses, company sources said."

Many analysts have noted that soon hybrid batteries will move from NiMH batteries to lithium-ion, but it has not been reported if this change will occur in time for the third generation Toyota hybrid drive.

Nonetheless, this could put Toyota far above the hybrid pack. By the time GM's hybrid program kicks into gear, Toyota will increase the fuel efficiency of their hybrids, while also offering better performance, and cheaper prices. Preliminary reports note that Toyota hybrid costs could be halved by this development.

At that pace, the fourth generation hybrid could possibly achieve prices in the same range as conventional vehicles, but offering significant gains in fuel efficiency. Imagine being able to buy either buy a 30 mpg conventional vehicle or a 60 mpg hybrid version for the same price.

Which would you buy?