Toyota has unveiled – in Las Vegas – a much sleeker looking, fourth generation Prius that looks more sedan-like than hatchback and clearly draws styling cues from the automaker's current halo technology model, the fuel cell Mirai. The introduction of the 4G "Prius marks a further advance in the history and achievements of Toyota’s hybrid power technology", the automaker claimed.

"The new model builds on the strengths and achievements of its predecessors and is set to establish new benchmarks in fuel economy, emissions and efficiency. Each successive Prius has delivered improvements in these areas, but the new model is aiming to make the biggest leap yet in performance."

The model is powered by a new generation of Toyota’s full hybrid powertrain and is claimed to have "made significant advances in highway fuel economy" (critics claim diesels are more efficient for high speed running here in the UK) and provide "a much more rewarding driving experience. Acceleration is smoother and more responsive, and, at higher speeds, is quieter and has a more linear feel that is better aligned to engine speed".

The car is built on the first Toyota New Global Architecture (TNGA) platform with a lower centre of gravity for improved handling response and stability. Load space is improved thanks to the use of a smaller, more energy-dense hybrid battery and a new double wishbone rear suspension system – features which do not intrude on boot capacity.

The Toyota Safety Sense suite of active and passive items is included with the addition of radar-managed adaptive cruise control and a pedestrian detection function for the pre-crash safety system.

Detailed design changes to the engine have achieved more than 40% thermal efficiency – a claimed world-best performance for a petrol unit. Other hybrid system components have been made more compact and have been repositioned for optimum packaging, further contributing to the car’s lower centre of gravity. The new nickel-metal hydride hybrid battery is more compact while its durability and charging performance have been significantly improved.

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"The new Prius demonstrates the genuine rewards that remain to be enjoyed from Toyota full hybrid technology, advantages that will steadily feed through to new generations of other Toyota hybrid models," the automaker said.

Prius global chief engineer Kouji Toyoshima said nearly every aspect of the hybrid had been improved to create a car that will appeal to the senses in its own right, above its well-recognised green credentials.

"There is much more to the new Prius than a green image. From the bold design to the quality interior, the Prius has never had such a powerful presence," Toyoshima said.

KBB.com senior analyst Karl Brauer said: “Nearly every vehicle category [in the US] has grown in volume over the past five years with the exception of hybrid and alt fuel vehicles. The Prius has always defined this category because of its dominant position in terms of sales volume. That means when Prius demand falters the entire segment falters, which is what has happened over the past two years as gas prices dropped and other, non-hybrid vehicles have increased their fuel efficiency. The Prius’ 50 mpg was an impressive figure 10 years ago, when few cars got over 30 mpg and most SUVs barely achieved 20. Now we’ve got multiple economy cars approaching 50 mpg and a range of midsize and compact SUV’s achieving 30-plus mpg. All of these factors have diminished the Prius’ appeal and put pressure on Toyota to create a fully capable sedan that offers appealing looks, driving dynamics and high-tech features, in addition to excellent fuel efficiency. Early indications suggest the next Prius will do just that, giving it a solid chance at reviving its appeal while reversing its sales decline.”

Autotrader senior analyst Michelle Krebs said: “The Toyota Prius still dominates in the electric/hybrid segment, however, the entire segment and the Prius have been struggling – a struggle that started even before gas prices started dropping. Sales of the hybrid/ev segment started falling as gas prices were on the rise, dispelling the old thinking that climbing gas prices translate to higher hybrid/EV sales this round. That was likely due to the fact that dramatic improvements have been made to little old gasoline engine. Unless a consumer wants to show off an environmental image, they can opt for non-hybrid instead of the Prius and get close to the same fuel economy. Lower gas prices, estimated to be putting an extra US$700 back into household budgets, just make the decision for a non-hybrid a little bit easier.”

KBB analyst Akshay Anand added: “The Prius is in a tricky spot. The rest of the industry has been catching up in terms of MPG since the iconic vehicle’s inception, meaning the MPG spread between Prius and many other vehicles, including midsize sedan competitors, is narrowing. Higher mileage vehicles also get diminishing returns, meaning that the difference between 25 and 30 MPG is much more impactful than the difference between 50 and 55 MPG. Consumers view fuel efficiency as less important than they did a few years ago, and there’s simply a ‘new normal’ for many people in terms of gas prices. When gas first hit $4/gallon, many consumers were scared. Now, it’s no big deal. The Prius has enormous brand equity within the name, but it needs to be more than ‘just’ a high mileage vehicle. It needs pack features beyond MPG, making it a ‘great midsize sedan that happens to get great MPG’, not a ‘high MPG midsize sedan’. The styling cues we’ve seen are definitely a start, as the Prius look is dated and a bit quirky, but it will be fascinating to see what else the Prius has in store.”