Toyota says the whole system reduce noise levels inside the car by up to 8dB

Noise-cancelling isn’t just useful for getting some peace and quiet on a plane, it’s also great for shutting out the hubbub of the motorway on a long drive, at least, it is if you’re driving a Toyota.

The car firm has shoved its new Active Noise Control technology inside the Toyota Crown Hybrid, a half electric, half petrol car that uses speakers to cancel out noise from the engine, road, and other cars.

Toyota says the whole system reduce noise levels inside the car by up to 8dB, using three microphones inside the cabin that listen for noise, before passing it to a processor that flips it, and plays reversed signals back out of three speakers in the front doors and parcel shelf.

The effect is a dampening of low frequency rumble, and a much quieter ride

Toyota Camry hybrid hallelujah for car industry

The Federal Government revealed it would help Toyota by giving it $35 million from its $500 million Green Car Innovation Fund, money Toyota said could help subsidise the higher cost of the hybrid.

Premier John Brumby joined Toyota executives and staff at Altona yesterday to celebrate the announcement, but refused to reveal how much Victorian taxpayers would be kicking in to the project.

It's also unclear how many jobs the new production line will create.

Prime Minister Kevin Rudd, who was at Toyota's headquarters in Nagoya yesterday for the announcement, said the new Camry hybrid would use 30 per cent less fuel than a conventional Camry, saving an average family who drove 20,000km a year $1000 from its annual fuel bill.

Mr Rudd called the hybrid plan a "significant coup".