Toyota Motor Corporation recently announced that the Toyota Prius, the world's first mass-produced gas-electric hybrid vehicle, has surpassed one-half million worldwide cumulative sales with 504,700 units sold as of the end of April.

Toyota launched the Prius in late 1997 in Japan.

Its popularity in Japan encouraged the launch of Prius in the U.S. in July 2000. The first-generation U.S. Prius was a low-volume unit (12,000 produced annually) that gained an immediate following, particularly among environmentally conscious consumers. The second-generation U.S. model was launched in the fall of 2003 as a 2004 model year.

The all-new 2004 Prius came with larger dimensions, all-new styling, and featured Hybrid Synergy Drive, Toyota's newest hybrid technology.

Heavy consumer demand for the Prius triggered multiple increases in production. By 2005 Toyota was producing over 100,000 units annually for the U.S. market. Prius had propelled itself from a niche environmental car into the mainstream car market.

In 2005, calendar year sales of Prius in the U.S. reached more than 107,000 units sold, making Prius the third-best selling Toyota passenger car after the Camry and Corolla.

From its humble beginnings in the summer of 2000 through May of 2006, 266,212 Prius have been sold in the U.S., making up more than half of all Prius sold worldwide. Even with production increases, continued heavy consumer demand still presents challenges for Toyota as days supply figures for Prius remain in single digits.

The successful launch of the Prius encouraged Toyota to expand their hybrid technology to existing models in the Toyota and Lexus lineups. In April 2005 Lexus introduced the RX 400h, the world's first hybrid-powered luxury vehicle. One year later in April 2006 the Lexus GS 450h made its debut as the worlds first front engine, rear-wheel drive full-hybrid performance sedan.

June 2005 saw the launch of the Toyota Highlander Hybrid SUV, and this past April marked the debut of the Camry Hybrid. With the expansion of its hybrid technology to a diverse group of vehicles, overall cumulative worldwide sales of Toyota and Lexus vehicles has exceeded 600,000 units through March of this year.

Lexus will further expand its hybrid lineup in April 2007 with the launch of the LS 600h L luxury hybrid sedan, the world's first vehicle to feature a full-hybrid V8 powertrain.

Thanks to the success of the Prius and the continuous improvements in hybrid technology, consumers can expect to see more hybrid powertrain options in the Toyota and Lexus lineups.