Toyota Prius Plug-in hybrid is expected to offer 49g/km of C02 and manage 134.5mpg fuel economy

The new Toyota Prius Plug-in hybrid will cost under £31,000 when it goes on sale in the first half of next year.

The price does not take into account government funding through the Ultra-Low Carbon Vehicle grant scheme. This could reduce the price by £5000, taking the cost to around £26,000. The Toyota qualifies for grant support by meeting the criteria for plug-in vehicles.

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By comparison, the all-electric Nissan Leaf costs £30,990 (or £25,990 when the Government subsidy is taken into account), and the hybrid Chevrolet Volt is expected to cost from £33,545 (£28,545) when it goes on sale next year.

See pictures of the Toyota Prius Plug-in hybrid

Toyota claims the Prius Plug-in hybrid will allow drivers to cover more than 14 miles in EV mode, using power from its hybrid battery. Economy figures have yet to be ratified for the car, but Toyota predicts Prius Plug-In Hybrid will emit 49g/km of C02 and offer 134.5mpg fuel economy on the combined cycle. Read more about the Toyota Prius Plug-in hybrid

The Prius Plug-in hybrid will qualify for a benefit-in-kind company car tax rating of five per cent for drivers, and consequently a monthly tax burden of less than £52 for a 40 per cent tax payer, based on the guideline vehicle price. Businesses will save on fleet costs thanks to a 100 per cent write-down allowance and lower national insurance contributions.

Toyota is showing off the capabilities of the Prius Plug-in hybrid with 20 prototype versions that are taking part in a demonstration driving programme in London at the moment. The demonstration programme, which is being mirrored in many cities around the globe, is providing data about battery recharging patterns and highlighting how motorists can optimise recharging to make best use of the car's power supply.

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