The focus of the next generation of HSD is to reduce cost and size of the hybrid system by half in order to reach mass market. Well, not that the current Prius has not taken off. Their goal is to sell 1 million hybrids a year by 2010. To grasp this, it took almost 10 years for Toyota to sell the first 1 million Prius. Given that Li-ion is too new (not throughly tested) and still expensive, it just make sense that the next gen Prius continues to use the proven NiMH tech.

On top of that, Toyota is planning to increase 30% in efficiency and increase performance (similar jump from 2003-2004). That is an arduous task.

It also make sense to brunch off the plug-in to another version of Prius. Smaller and lighter car is the key to reduce the cost and size of the necessary battery pack while maintaining a practical range. I see the 1/X concept going that route with Li-ion tech. Imagine a production version of 1/X achieving the same range as Volt (40 miles / 16kWh) with half the capacity battery pack (8kWh). The saving in the battery pack is $15k and the carbon fiber reinforced plastic can't cost that much! I have no idea but say if cost $5k more than using steels, 1/X will still come out $10k less than Volt.

I am just excited over these new developments and can't wait until 2009.