Toyota has developed a version of the Prius hybrid vehicle that runs on ethanol-blended petrol for launch in Brazil later this year.

Ethanol, made from sugar cane, accounts for 25% of the fuel and the amount of carbon dioxide emitted from the model is even less than that from the conventional Prius, according to the company.

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Toyota will also launch its strategic Etios subcompact car, which is produced in Brazil, at the same time. The model is already a success in India where it is locally made.

The Etios will further expand Toyota’s vehicle line in Brazil after it started to sell Lexus luxury cars in June.

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