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A new hybrid system has been developed which features a highly efficient, clean gasoline engine, and a high performance exhaust catalyst system. The new system meets the strictest low emission standards in the world, while realizing a major reduction in CO2 emissions. The Toyota Hybrid System (THS) has improved engine performance, transaxle transmission efficiency, and various vehicle improvements for improving fuel consumption. It also employs a high performance catalyst, a rapid catalyst warm-up strategy, Toyota HC Adsorber and Catalyst System (Toyota-HCAC-System) and a Vapor Reducing Fuel Tank System. These combined technologies allow for the achievement of U.S. California SULEV, European Step 4 and Japanese J-ULEV emission requirements. It has also lowered the CO2 level to less than 120g/km in EC European mode.

In succession to the world-first introduction of a mass production gasoline hybrid passenger car into the Japanese market in 1997, Toyota also has introduced an enhanced version of the above to the US and European markets in 2000. Upon introduction of Toyota Hybrid System (THS) into the US market, a drastic reduction of gasoline vapor evaporation from the fuel tank was necessary, in order to meet the most stringent exhaust emission (SULEV) and evaporative emission standards in the world. In order to meet this requirement, a fuel tank system named “Vapor Reducing Fuel Tank System” was developed. This is the first commercial application in the world to use a variable tank volume to drastically reduce gasoline vapor generation.