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Toyota's global hybrid sales top million

June 12, 2007
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A decade after the first Prius went on sale, Toyota's global sales of gas-and-electric-powered vehicles totaled 1.047 million as of the end of May, of them nearly 702,000 were sold outside Japan, underlining the Japanese automaker's lead in "green" technology that has changed the face of the auto industry, informed Associated Press.

Sales of Toyota's RX400h hybrid SUV have reached 85,000 worldwide since it was introduced in 2005, while the Highlander has sold 67,000 over the same period. The Prius is the overwhelming leader selling 478,800 units in the same period of time.

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, GM promising four new hybrids this year, and hybrid systems for the Saturn Aura and new Chevrolet Malibu sedans.

Hybrid sport-utility vehicles have struggled in sales compared to the Prius, partly because an SUV doesn't have a green image to start with, analysts say.

Toyota PirusWhile most automakers are working on hybrids, Toyota has the advantage of almost 10 years of experience in selling the technology and using feedback from drivers to make improvements, rather than relying on information from labs. “Toyota is clearly ahead of the pack in hybrids," said Tsuyoshi Mochimaru, auto analyst with Deutsche Securities in Tokyo. “Rivals will have a hard time catching up to Toyota in hybrids.” said Yasuaki Iwamoto, auto analyst with Okasan Securities Co.

Toyota has placed a large emphasis on hybrid technology offering several other hybrid models, including the hybrid Camry and hybrid Lexus models. Lexus LS 600h, Toyota’s most expensive hybrid- about US$124,000 at current exchange rates will be exported over the summer.

Toyota has repeatedly stressed that the hybrid holds more potential than the diesel or other innovations. "Hybrids will play a key role throughout our lineup, in all vehicle categories" Toyota spokesman Paul Nolasco said.

Demand for hybrids has soared amid higher fuel prices and greater consumer concern about pollution and global warming. Not all hybrids sell well though. Honda Motor Co. said it will discontinue producing the hybrid version of its Accord sedans, because it didn't fit the customer and it sold purely.

The next innovation in hybrids is expected to come from a new type of battery, called the lithium-ion battery-smaller and lighter than the nickel-metal hydride batteries Toyota now uses for its hybrids. Lithium-ion batteries are widely used in laptops. Mitsuo Kinoshita, a senior Toyota executive, recently denied Japanese media reports that Toyota had given up on having a lithium-ion battery system for the next-generation Prius, telling reporters that the company s still working on it.

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