A dual-mode vehicle or a type of rail-cum-road car being developed by JR Hokkaido may be soon replacing the diesel-powered rail cars operated by the small rail operators across Japan.

The dual mode vehicle is based on a microbus, runs both on roads, railroads by switching between rubber tyres and steel wheels, and can automatically change the modes at the stations.
The best pat of the vehicle is that it promises a cheap solution as compared to the diesel-powered rail car. They cost just Y20 million ($A217, 000) each, that is just one-seventh of a diesel-powered rail car and possess a good fuel and maintenance economy. The company debuted a test model nearly three years ago, and a set up a test line in the Shizuoka Prefecture city of Fuji late last month -- but JR Hokkaido will be conducting commercial tests on the Semmo Line near Shiretoko in April 2007.
Via: engadget