Toyota to launch new eco car in Tokyo

Toyota is to unveil a new compact hybrid car at the upcoming Tokyo Motor Show amid intensifying competition to build more eco-friendly vehicles.

The "Aqua", which is to be sold under the name "Prius C" outside Japan, offers improved fuel efficiency.

Its fuel economy exceeds that of Toyota's existing Prius model at 32.6 kilometres per litre, making it one of the world's most fuel efficient cars.

The Japanese auto giant plans to launch the five-seater model in late December in Japan, before a gradual global roll-out.