A brand new hybrid-only model will join Toyota’s Prius in 2009 to help the Japanese carmaker boost its sales of hybrid vehicles past 1m. The new model will be a midsize sedan and come fitted with a 2.5-3.0L engine, rather than the anemic 1.5L engine currently found in the Prius.

The sedan will get Toyota’s third-generation hybrid system, which promises to be both smaller and lower priced, reports Japan’s Asahi newspaper. The new drivetrain will also feature in the next generation Prius that’s due in 2009 as well as other hybrid Toyota models. It should reduce the current price penalty of being green from $4,000 down to $1,900.

Toyota’s also looking in to rolling out hybrid-only station wagons and minivans down the track. A diesel hybrid is expected by 2010, and should achieve ratings of over 50mpg, even with the tough new EPA standards.