Japan's Green Cars Defy Recession

Defying the worst recession in decades, green cars in Japan are gaining ground against conventional gas-guzzlers, offering automakers hope of re-energising a flagging domestic market.


Toyota Prius Hybrid

Toyota Motor Corp's latest edition of the Prius hybrid became Japan's best selling car in monthly sales in May, pulling ahead of its rival, Honda's Insight, an industry survey showed Thursday.

The re-modeled Prius ranked number one in sales, which climbed to 10,915 last month and above the company's monthly target, against 8,183 for the Insight, the Japan Automobile Dealers' Association said.

Both automakers launched hybrids amid a severe economic downturn, but they topped domestic sales for the second straight month, in part due to government subsidies including tax breaks for buyers of fuel-efficient cars.

Honda's Insight clinched the top spot in April.

The revamped Prius has solar panels in the roof to power the ventilation system, a 1.8-litre petrol engine and an electric-powered water pump.