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NAGOYA (Kyodo) Toyota Motor Corp. plans to release a cheaper compact hybrid with better fuel-efficiency than the new best-selling Prius hybrid as early as 2011, sources said Thursday.

The compact gas-electric hybrid will have a fuel efficiency of more than 40 km per liter and will be priced around ¥1.5 million, which is lower than the ¥2 million price range of the Prius and Honda Motor Co.’s Insight hybrid, the sources said.

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