Now, according to a report first aired in the Japanese newspaper Nikkei, the 2010 Toyota Prius was the top vehicle in total sales for the year of 2009 in Japan.  In 2009, Japanese Prius sales reportedly grew 300 percent, reaching a national total of 208,876 units for the year.

The third-generation Prius packs a higher horsepower electric motor and gas engine, adding 24 hp to the Prius's combined horsepower.  The drag coefficient is reduced, the vehicle component weight is reduced, and the new battery pack is smaller and more efficient.

Despite the car's success, there are some troublesome signs, though.  According to Koji Endo, managing director of advanced Research Japan in Tokyo the Prius only makes $2,100 USD profit per unit sold.  Earlier in the year, estimates of the profit margin stood at about $3,100 USD.  Dropping profit margins came largely from cost cutting to keep up with the 2010 Honda Insight, which moved 93,283 units and was fifth place in total yearly sales. 

To date, an estimated 1.25 million Prius vehicles have been sold worldwide.  Toyota believes that the Prius will become its bestselling model before long.  However, it still has a long way to go to achieve that goal.  In the U.S., its sales were relatively strong, but reportedly only landed it in 16th place.

The Japanese market is arguably very different from the American market – Japan's congested streets, high population density, and high population concentration in urban centers make hybrids an easier pitch.  American buyers, many of which don't live in the city, are still trying to weigh the benefits of hybrid vehicles.

Last year we test drove the 2010 Toyota Prius extensively, both in rural and urban settings, and our impressions can be found here.