Toyota Prius May domestic sales overtakes Honda's Insight as No 1 car in Japan

04 June 2009

Toyota's gas-electric hybrid Prius overtook its rival, Honda's Insight , to make it to the top position as the No1 selling vehicle in May, in the domestic market for the first time in Japan, as hybrid vehicles are taking the top spot in auto sales.

The third-generation revamped version of Prius, launched in Japan just two weeks ago, sold 10,915 units in May more than Honda's Insight's 8,183 units in the domestic market.

Toyota's sales in May were nearly a five-fold increase from the previous month, according to data released by the Japan Automobile Dealers Association.

In April, Honda's Insight  hybrid ranked as the top-selling vehicle in Japan, with sales of 10,481 Insight cars, according to data released by the Japan Automobile Dealers Association.

Sales of hybrid cars which are powered by gasoline and electricity have peaked for the second straight month in Japan in the midst of recession indicating the increasing demand for green cars.

The demand  for hybrid cars are in Japan are picking up to some extent because of  tax break for environment-friendly cars, announced by the government earlier this year, to encourage their sales.