Toyota will introduce a new hybrid model (as opposed to hybrid-izing an existing line) in 2009, according to BusinessWeek. The new model will be between the Prius and Camry in power, and is seen as a way to increase market share while fending off clean diesels.

By the time the Toyota-to-be-named later rolls into dealerships in 2009, the competition from hybrids from GM and Chrysler will be much greater, as well as new diesels from Volkswagen and Honda.

The fuel efficient market has gaping holes between compacts and SUVs, and this mainstream category will likely see a bevy of new models. The new options will put pressure on car companies to lower prices, and the mass production of the electric drive trains and batteries should lower the costs for all hybrids. All good news for drivers who care about their environmental footprint and the cost of transportation.