Toyota is one of the largest companies to push hybrid electric vehicles in the market and the first to commercially mass-produce and sell such vehicles, with the introduction of the Toyota Prius in 1997. The company eventually began providing this option on the main smaller cars such as Camry and later with the Lexus divisions, producing some hybrid luxury vehicles. It labeled such technology in Toyota cars as "Hybrid Synergy Drive" and in Lexus versions as "Lexus Hybrid Drive."

As of October 2012, the Prius is the top selling hybrid car in world, with cumulative sales of 2.8 million units since its introduction in 1997.[83] The United States is the world's largest hybrid market, and the Prius liftback is the top selling hybrid car in the U.S. market, surpassing the 1 million milestone in April 2011. Cumulative sales of the Prius in Japan reached the 1 million mark in August 2011.Worldwide sales of hybrid vehicles produced by Toyota reached 1.0 million vehicles by May 31, 2007, and the 2.0 million mark was reached by August 31, 2009, with hybrids sold in 50 countries.Cumulative sales of TMC hybrids in Japan reached the 2 million mark in October 2012.As of 31 October 2012, cumulative sales of TMC-produced hybrid vehicles worldwide reached 4.60 million units.

As of October 2012, there are 19 TMC-produced hybrid passenger car models and one plug-in hybrid vehicle model available in approximately 80 countries and regions around the world, and the carmaker plans to launch 20 new hybrid models by the end of 2015. Besides the three generations of Prius liftback, Toyota's hybrid lineup includes the Camry Hybrid (1st and 2nd generation), Toyota Highlander Hybrid (Kluger Hybrid in Japan), the Toyota Auris Hybrid, Toyota Yaris Hybrid (Europe only), and the following models sold only in Japan: Alphard Hybrid/Vellfire Hybrid, Estima Hybrid, Toyota Sai, Toyota Harrier, and Toyota Crown Hybrid.

Beginning in 2011, TMC introduced three new members to the Prius family, the Prius v (Prius α in Japan and Prius + in Europe), the Prius c (Toyota Aqua in Japan), and the Toyota Prius Plug-in Hybrid, released in 2012 in Japan, the U.S. and Europe. With a total of 247,230 vehicles sold during the first quarter of 2012, the Toyota Prius family became the third top selling nameplate in the world in terms of total global sales, after the Toyota Corolla (300,800 units) and the Ford Focus (277,000 units).[89][90] Until September 2012, The Prius liftback was the top selling new car in Japan for 16 months in a row, until it was surpassed by the Toyota Aqua (Prius c) in October 2012.

Lexus also has their own hybrid lineup, consisting of the GS 450h, RX 400h/RX 450h, the LS 600h/LS 600h L, Lexus HS 250h, Lexus CT 200h, and Lexus ES 300h. Cumulative sales of Lexus brand hybrid vehicles worldwide reached the 500 thousand mark in November 2012, with the Lexus RX 400h/RX 450h as the top selling Lexus hybrid with 259 thousand units, followed by the Lexus CT 200h with 122 thousand units.