Toyota believes the new Yaris Hybrid will become well established with public sector fleets thanks to its low BIK tax liability.
The Yaris Hybrid, which has the lowest CO2 emissions of any vehicle on sale that doesn't require plugging in,is expected to be priced from less than £15,000 and will fall into the 10% BIK tax bracket for the foreseeable future thanks to CO2 emissions of 79g/km.
It means the car will cost standard rate taxpayers less than £25 per month in BIK tax.
In fact, the car only narrowly misses out on the 50% discount in BIK available for cars with CO2 emissions of less than 75g/km.
The model, which made its debut at the Geneva Motor Show, has fuel consumption of 80.7mpg on the combined cycle and its boot space is similat to a standard Yaris hatchback.
Ewan Shepherd, general manager of Toyota and Lexus Fleet, told Fleet News: "The Yaris Hybrid will be a big public sector car. We've tweaked out terms with leasing companies because we weren't quite as competitive as we should have been and we've been talking to many leasing companies who specialise in public sector fleets."