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It is necessary for us to reduce CO2 emissions in order to hold down global warming which is advancing year by year. Toyota Motor Corporation believes that not only the introduction of BEVs but also the sale of the hybrid vehicles must spread in order to achieve the necessary CO2 reduction. Therefore, we planned to improve the attractiveness of future hybrid vehicles. Prius has always made full use of hybrid technologies and leading to significant CO2 reduction. Toyota Motor Corporation has developed a 2.0L hybrid system for the new Prius. We built the system which could achieve a comfortable drive along following the customer’s intention while improving the fuel economy more than a conventional system. The engine improves on both output and thermal efficiency. The transaxle decreases mechanical loss by downsizing the differential, and adoption of low viscosity oil.