Toyota worldwide hybrid sales top 1 million

updated 10:39 a.m. ET June 7, 2007

TOKYO - A decade after the first Prius went on sale, Toyota’s global sales of hybrid vehicles have hit a landmark 1 million, underlining the Japanese automaker’s lead in “green” technology that has changed the face of the auto industry.

Toyota Motor Corp.’s cumulative sales of gas-and-electric-powered vehicles totaled 1.047 million as of the end of May. Of those, nearly 345,000 hybrids were sold in Japan, while 702,000 were sold abroad, the company said in a statement Thursday.

Sales of Toyota hybrids have climbed from just 18,000 in 1998 to 312,500 last year, the company said.

Demand for hybrids, which deliver superior mileage by switching between a gasoline engine and electric motor, has soared amid higher fuel prices and greater consumer concern about pollution and global warming.

Toyota’s dominance in the category has driven Detroit’s automakers to follow with their own versions and to rely less on lower-mileage SUVs as the main engine for their profits.

“Toyota is clearly ahead of the pack in hybrids,” said Tsuyoshi Mochimaru, auto analyst with Deutsche Securities in Tokyo.

The Prius is the overwhelming leader in the category, with a total of 757,600 units sold since its 1997 introduction in Japan. Toyota began selling the Prius in North America, Europe and other places in 2000. Last year, the model made up more than 40 percent of hybrid sales in the U.S.

The Prius, which gets 55 miles a gallon on combined city and highway driving conditions, has been enormously popular as a mid-size sedan, a best-selling vehicle category.

Although most automakers are working on hybrids, Toyota has the advantage of almost 10 years of experience in selling the technology, and in using feedback from drivers to make improvements, rather than relying on information from labs.

Toyota has placed a large emphasis on hybrid technology: It offers several other hybrid models, including the hybrid Camry and hybrid Lexus models.

“Hybrids will play a key role throughout our lineup,” Toyota spokesman Paul Nolasco said. “That means all vehicle categories.”

The company also started domestic sales of its most expensive hybrid, the 15 million yen — or about $124,000 at current exchange rates — Lexus LS 600h. It will be exported over the summer, according to Toyota.

Not all hybrids sell well. Earlier this week, Honda Motor Co. said it will discontinue the hybrid version of its Accord sedans, which sold poorly because it didn’t fit the customer demand profile of the smallest, least expensive hybrids with the highest gas mileage.

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