Toyota PriusJune 2009

The Toyota Prius has been the car to be seen in since it was first launched in 2000. Every Hollywood star worth their salt - stand up Leonardo DiCaprio and Cameron Diaz - has been seen behind the wheel of one, the hybrid-engined car helping them to wear their environmental credentials like a green badge of honour.

So over the last nine years, the Prius, through two generations, has largely had the eco-car field to itself.

But things won't be quite so cut and dried for this latest incarnation, as it finds itself facing some stiff competition from the likes of the new Honda Insight.

The list of enhancements and new technology on this third-generation model is extensive, with Toyota stating that nearly 90% of components have been redesigned. The most obvious improvement, though, is the way it looks.

From the side and rear, the design of the new Prius has a familiar aerodynamic look. The front, however, is a different story: it looks almost sporty, with a deeper bumper and new-shape headlights. Inside, there's a smart-looking dash and a 'floating' centre console, plus a head-up display that projects driver information on to the windscreen.

But for all the styling improvements, it's under the bonnet where most of the changes have occurred. Firstly, the Prius is now a full hybrid, with a 1.8-litre VVTi petrol engine replacing the 1.5-litre from the previous model. 0-62mph is now achievable in 10.4 seconds, while the range has been extended to around 680 miles.

The Prius also has an energy recovery system - similar to those found on F1 cars - that allows the car to recharge the battery by reusing the energy from braking, which in turn means the driver is able to use the car more often in electric mode, reducing overall fuel consumption.

The Prius has three drive modes, which can be selected manually: EV mode, Eco mode and PWR mode. EV mode allows the car to be driven entirely on the battery at speeds below 31 mph for around 1.6 miles; Eco mode reduces the car's throttle responses and controls air conditioning to support better fuel economy; and PWR mode modifies throttle response by up to 25% and boosts power to aid acceleration to make overtaking easier.

On the road, the Prius is by no means the most dynamic of cars, but it handles well enough: it's composed on even the most challenging roads and body roll is well controlled. When pushed, there is the inevitable understeer, but most Prius drivers are unlikely to be travelling quickly enough to experience it. It also feels solid on the motorway and is happy cruising along at 70-75mph.

Using fuel-efficient driving techniques, we diescovered that it's quite possible to achieve 80mpg from the Prius on shorter runs using Eco and EV modes. The Eco monitor is a particularly useful tool for this, with Toyota saying that it can help drivers achieve an improvement of up to 15% in fuel economy.

And while the Prius's technology might take all the headlines, it's also worth remembering that this is also a D-segment family car, a role it manages to perform pretty well. Space in the rear is on a par with the rest of the segment, accommodating two adults in comfort, while there are plenty of storage compartments throughout the cabin and a decent-sized boot.

Options such as 17-inch wheels are available for those who want to give their Prius a bit more street cred, or there's an optional solar panelled sunroof that helps to cool the cabin when the car is parked, reducing the need for air conditioning during start-up.

And despite all the new kit, Toyota isn't increasing the cost of this model compared to the outgoing one. Need we say more?