The first mass-produced hybrid car was launched in 1997

Since introducing the world’s first mass-produced vehicle with a hybrid powerplant – the Prius - in late 1997, sales of Toyota hybrid vehicles has exceeded 1.4 million units worldwide (cumulative sales till the end of March 2008). Not surprisingly, Toyota is the world leader and has proven that the technology is practical and contributes to reducing environmental impact from motor vehicles.

During the first generation of the Prius, Toyota paid a lot of attention to feedback from owners and found many areas to improve upon. Performance was an issue in the USA where there was more driving done on long open highways. So it was not surprising that the company did not push hard on export sales and by 2003, just before the second generation was launched, only 153,000 units were sold in total.

The second generation marked a big push as evident from the chart and in 2004 alone, 125,000 units were sold. The sleeker second generation was substantially improved and offer far more dynamic performance. With larger dimensions, all-new styling, and the new Hybrid Synergy Drive, the next generation of Toyota's hybrid technology, its popularity grew quickly and by 2005, Toyota was sending over 100,000 units of the Prius to the US market annually. From a niche environmental car, it had moved into the mainstream car market. With the second generation, environmental awareness was also higher and more people were willing to buy such a car. Celebrities were also quick to become owners,  …perhaps more to make a statement about themselves than to do their bit for the environment! The North American market, incidentally, has taken around 830,000 hybrids which is more than half of what Toyota has sold to date.

In 2005 too, Toyota began assembling the Prius outside Japan for the first time – in China with its partner FAW. Its move to offer the model in that country was inspired by the environmental situation which is quite bad with 5 of its cities being among the 10 most polluted in the world. Toyota has not given figures for Prius sales in China but it planned to sell at least 3,000 units a year initially.

Even the flagship Lexus is available with a hybrid powerplant

Other hybrid models include Highlander SUV and Camry

The Prius (which accounts for 996,000 of the 1.4 million units sold so far) is not the only hybrid model Toyota offers today. Intent on popularizing such vehicles, it has developed hybrid variants of other models, including SUVs. Its hybrid line-up today numbers 12 different models, including the flagship Lexus LS600h luxury sedan, the world's first vehicle to feature a full-hybrid V8 powertrain. It is Toyota’s intention to offer almost every model with a hybrid variant in future.

Toyota’s success with hybrids has essentially forced other carmakers to take notice and to come out with their own models. Some, like Ford, have licensed some of the hybrid technology from Toyota but Honda has its own technology which it first introduced in the Insight coupe shortly after Toyota launched its first Prius. Like Toyota, Honda is also pushing hybrids and its president told Malaysian journalists last year that the next generation of Honda’s hybrid technology will be more affordable so more people can buy such cars.

Whether hybrid technology eventually replaces the internal combustion-engine only remains to be seen. It might be a transitional technology on the way to fuel cell vehicles (FCVs) but Toyota engineers say that many lessons are being learnt which are used in FCV development.

Talk about hybrid technology and other alternative fuels in the MTM Forum