Toyota has announced that their new Prius will get 94 MPG on gasoline. We already knew it was going to be a plug-in hybrid as well, which means that short trips can be gas-free. It will supposedly be launched as a 2010 model in late 2009. Who knows if that date will be met.
GM is of course betting the farm on the Chevy Volt, an electric-engine car that has a gas engine which spins up only to recharge the batteries when they are getting low. They are shooting for a release date of 2010 as well, although may miss a little bit. They are counting on building out the next-generation of automotive batteries, and building a car around a battery that doesn't exist yet while building the battery in parallel.
Tesla, the underdog in all of this, has just recently announced that they are going to build a sedan version of their exciting Tesla Roadster. It will be an all-electric (no gasoline engine anywhere) sedan capable of carrying 5 people for 225 miles on a single charge and cost $60,000 with a $5,000 CA tax rebate. Still a little high, but the gas savings could offset some of that too.
Any way you look at it, the transportation world is moving to electric very very seriously these days. It seems very exciting.