Toyota is aiming for the next-generation Prius to have carbon dioxide emissions of less than 100g/km.
The current lowest-CO2-emitting car is Volkswagen's Polo Bluemotion, which puts out just 99g/km of carbon dioxide.
Volkswagen has achieved this by using a small diesel engine, skinny tyres and a series of weight-saving and aerodynamic modifications over the standard car.
The current petrol-electric Prius emits 104g/km of carbon dioxide, but Toyota GB chief Miguel Fonseca predicts that figure will fall, thanks partly to a similar weight-saving programme.
Speaking about the next-generation Prius, due in 2009, Fonseca said: 'We expect a figure of between 90 and 99g/km of carbon dioxide.'
Fonseca also has high hopes for the IQ concept car that the company revealed this week at the Frankfurt motor show.
'We invented the compact 4x4 segment with the RAV4 and I see this car doing the same thing - inventing a whole new sector,' he said.
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