According to Engadget, Toyota has confirmed plans to launch a plug-in hybrid by 2010.

The vehicle, which is a modified version of the ultra-popular Prius, is capable of achieving fuel efficiency of 99.9 miles-per-gallon in EV mode, though it can only sustain pure battery power for about seven miles. The announcement will no doubt come as a total bummer to GM, which has plans to sell its own plug-in, the Volt, around the same time — though the Chevy vehicle is said to be able to make trips of up to 40 miles on a six-hour charge.

Competition! Good!