Toyota is considering ending the argument backed by European automakers, that internal combustion (ICE) diesel engines are equally efficient for solving environmental concerns as gasoline-electric hybrids, simply by producing diesel-electric hybrids.

Both hybrid diesel and natural gas-fuelled ICE drivetrains may become reality, designed to suit local market needs, said Senior Managing Director Hiroyuki Watanabe.

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Jason,
As i see it the diesel hybrids will be even more efficient as gas w/ the HSD system, it will let them stay at exactly their mose efficient rpm. The question will be weather the emissions technology will be up to it.
Cheers,
Steven