With all this excited talk about electric cars, the full-scale production of which is still years away, launch of the third generation of the Toyota Prius has been almost overlooked.

Judging by the number trundling around the streets, the Prius has found a spiritual home in Oxford with its promise of not quite guilt-free motoring, but at least a vehicle which does pay more than lipservice to the environment.

Toyota has been at the forefront of the development of hybrids — cars which run on a combination of batteries and petrol.

And in town, especially when the car hums almost silently on its batteries alone, owners reap the benefits at the petrol pumps while emissions are kept to a minimum.

For those with one eye on the tax man, the car’s 89g/km C02 figure will leave the Treasury significantly out of pocket. The same can be said of the car’s fuel consumption — 72.4mpg will shame even the most efficient mid-size diesel car.

Toyota’s aim with this new model is to broaden its appeal still further and take away much of the need to treat it any differently from, say, a Ford Focus.

In short, Toyota wants you to think of the Prius as a genuine alternative to a conventional family-size car.

It has certainly succeeded on the space front. This Prius offers Avensis levels of cabin space fore and aft. There are also improvements at the rear with a larger boot — a genuine criticism of the old car, thanks to the space occupied by the car’s battery pack.

While the changes to the cabin are most welcome and do much to put the car on a level footing with the likes of the Focus, it’s the car’s underlying technology that remains the focal point.

The bulk of this Prius — inside and out — is all new. The car’s engine is up from 1.5 to 1.8-litres, while the electric motor is more powerful, yet smaller, and the battery pack is more efficient.

With all the various inefficiencies reduced, the engineers have achieved what some thought would be impossible: significant real-world gains in economy and emissions.

As far as the technology goes, it all works. Really, there’s no need to know what goes on under the bonnet.

Unlike an electric car, you don’t need to plug it in to charge it up overnight. That’s the beauty of the Prius — it is a self-contained unit requiring no special treatment.

And that’s the ownership experience in a nutshell. You get in, press the starter button, stick the car in Drive and away you go.

The car’s rather flash instrument panel can be configured to show where the energy is flowing (to or from the engine or battery) so you know what’s going on.

Armed with that information, you can tell when you’re running on battery power alone, or when the petrol engine is part of the equation.

You also learn to work with the car: use less throttle on the flat for greater economy, for instance.

Don’t confuse this with compromising your driving style — it’s just a better informed way of getting the most out of the Prius.

In the real world the Prius is a doddle to drive. It is a relaxing experience as it’s been tuned for comfort, not sporty motoring.

Contrary to the opinion of the cynics, it does ‘do’ corners. In fact, B-roads and poorly surfaced routes are no match for the hybrid’s chassis and are dispatched with the same skill as your average family hatch.

Factor in a generous level of equipment across the range, plus a comprehensive amount of safety kit — better than you’d find on a conventional car — and it is clear that Toyota has pulled out all the stops to tempt people out of their dated, 20th century conveyances.

Does it work? Only you can decide. You’ll need to decide whether your driving patterns bring out the best in the Prius — high mileage motorway drivers are unlikely to be able to exploit the car’s electric only mode, for instance.

There is little doubt, however, that if everything adds up and your routine can maximise the car’s talents, the Prius can deliver significant savings without any hint of a compromise from you.

It is not just the technology that has evolved at a rapid rate, but also the car’s ability to impress.

Model: Toyota Prius T4

Performance: 0-62mph 10.4 seconds, top speed 112mph

Economy: 72.4mpg (combined) CO2 emissions: 89g/km.

Price: £19,990

Web: www.toyota.co.uk/prius