Toyota's fuel-sipping Prius was the best-selling car in Japan last year, becoming the first hybrid to top the annual rankings, according to industry figures.

Toyota sold 208,876 petrol-electric Prius vehicles in 2009, far ahead of the runner-up, Honda's non-hybrid Fit, which sold 157,324, according to the Japan Automobile Dealers Association.

The rankings exclude popular mini-vehicles with engines of up to 660cc.

The Prius has been Japan's top-selling car since May, when Toyota - the world's largest automaker - rolled out a cheaper, revamped model boasting a fuel-efficiency of 38 kilometres per litre.

Prius sales almost tripled last year from the previous year, while Honda's Insight hybrid ranked fifth with sales of 93,283 vehicles, the association reported.

Japanese automakers have made strides with hybrid cars because of high oil prices and growing concern about emissions blamed for global warming.

Sales of hybrids are also getting a boost from the government incentives in Japan for drivers to purchase less polluting vehicles.

Automakers hope that the popularity of fuel-efficient vehicles, helped by government tax breaks, will re-energise the flagging auto market, which has been battered by the global economic downturn.

But hybrids face competition from pure electric vehicles. Mitsubishi Motors has rolled out its "i-MiEV" mini-electric car while Fuji Heavy Industries launched the Subaru Plug-in STELLA.

Nissan, Japan's third largest automaker, was slower than Toyota and Honda to embrace fuel-sipping petrol-electric hybrids but is preparing to launch its first all electric car, the Leaf, in late 2010 in Japan.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.