According to Automotive News and Japan's Nikkei newspaper, Toyota chief engineer Akihiko Otsuka has confirmed there's a Yaris Hybrid being developed for sale in Japan and the United States.
Toyota has been seeing tough competition from the equally egg-shaped Prius price-undercutting Honda Insight. The new car would wear a version of the Hybrid Synergy Drive and target the low end of the market, with a target price even lower than the Insight's $19,800 starting price. No timeline has been announced, but expect the Yaris Hybrid to be unveiled with the next generation of the bowler hat-shaped micro car for 2011. [Auto News Sub. Req.]