Think ‘hybrid’ and most people think ‘Toyota Prius’.
 
This is a view challenged by the manufacturer's Japanese rivals Honda with the similar looking Insight but, for now, the Prius dominates this market.
 
And this summer will see the arrival of the third generation of arguably the most iconic car of the 21st Century.

 
Since its 2000 launch (1997 in Japan) more than 1.7 million Priuses have found homes.
 
That accounts for 80 per cent of global hybrid sales and Toyota aims to ensure its full model range is offered with its Hybrid Synergy Drive by 2020.
 
The new Toyota Prius sees a significant and impressive development of that system – which incorporates a petrol engine, an electric motor which is recharged using energy from braking, generator, battery, power control unit and power split device – to improve performance, reduce CO2 emissions and deliver better fuel economy.
 
New, more powerful engine
 
This includes the replacement of the 1.5-litre petrol engine from the first two generation cars with a new 1.8-litre engine while a major overhaul of the other components has seen 90 per cent of them redesigned to make the Hybrid Synergy Drive smaller and lighter.
 
These changes make a big difference to performance:
 
• Increased power – up to 134bhp from 112bhp
• Faster 0-62mph acceleration – down to 10.4 seconds from 10.9 seconds
 
And they result in more environmentally friendly and economical motoring:
 
• Average fuel economy: 72.4mpg, up from 65.7mpg
• Range: 715 miles up from 623 on the same-sized fuel tank
• CO2 emissions: 89.6g/km, down from 104g/km and into the tax-free and congestion charge-free Band A

Increasing the engine size may not seem the ‘green’ thing to do. But Toyota says the improved fuel economy of the bigger engine at cruising speeds plays a key role in the improved fuel returns – as well as reducing engine noise.
 
Three driving modes
 
Toyota has added two new driving settings to offer motorists a choice of EV, ECO and Power modes.
 
The Prius operates in EV mode – using just the electric motor – by default at start and at speeds of less than 44mph. The petrol engine only kicks in under hard acceleration. Drivers can also select this mode for distances of up to 2km (1.2 miles) at low speeds when there is sufficient charge.
 
Switching between ECO and Power enables drivers to reduce acceleration response to the benefit of fuel economy or increase response with the effect of draining fuel resources more quickly.
 
Hitting 80mpg
 
The international launch event in Sweden included a 10 mile eco driving competition for journalists to try to return the best fuel consumption figure.
 
Up until that point, driving unfussily, with a combination of all three modes, we were averaging around 55mpg. But applying ourselves to the challenge and using EV mode wherever practical we managed to get 80.7mpg from our car.

A second day's driving also impressed with fuel economy at 74.3mpg over a 30 mile stretch of varied roads covered at an average speed of 38mph.

The Toyota Prius's distinctive shape remains essentially the same but its aerodynamic qualities have been improved to account for a third of the improvement to fuel economy.

A significant reduction in the size of the upper grille has decreased wind resistance. The lower grille has been increased for the same reason and to improve engine cooling and the angle of windscreen has also been made more acute.

The new Prius is slightly longer (10mm) than its predecessor. This has resulted in a more roomy interior, most noticeably when it comes to the boot – up from 415 litres to 445 litres. Reduced seat thickness has increased legroom for passengers in the rear.

Head-up display

One of the best additions is a head-up display, standard on all three model trims (T3, T4 and T Spirit), enabling drivers to view vehicle speed, the Eco drive monitor (which reveals how efficiently you are driving) and, on the satnav-equipped T Spirit model, route directions.

Toyota says it has also introduced improved soundproofing and greater body rigidity to reduce noise in the cabin, though in wet and windy conditions we still found wind and road noise clearly audible.

Safety

The car also features extensive revisions to the suspension for greater agility and ride comfort as well as new speed sensitive steering.

The Toyota Prius offers a choice of 15-inch and 17-inch wheels with the larger of the two designed to produce the better driving experience.

Our test drive was in the model with 15-inch wheels but even so it was both comfortable and a reasonably engaging drive, more than many would expect from a hybrid.

Prices held

Seven airbags come as standard and other safety features include Brake Assist, Traction Control and Vehicle Stability Control and active head rests.

Toyota is hoping this model will take the Prius from niche to mainstream and the car has certainly moved forward enough to put it on many more buyers' radar – particularly by reducing the costs of motoring, including holding the price at current model levels.

The new Toyota Prius will start from £18,370 and goes on sale in August 2009.

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