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Reducing vehicle CO2 emissions is an important measure to help address global warming. To reduce CO2 emissions on a global basis, Toyota Motor Corporation is taking a multi-pathway approach that involves the introduction of the optimal powertrains according to the circumstances of each region, including hybrid electric (HEVs) and plug-in hybrid electric vehicles (PHEVs), as well as battery electric vehicles (BEVs). This report describes the development of a new PHEV system for the Toyota Prius. This system features a traction battery pack structure, transaxle, and power control unit (PCU) with boost converter, which were newly developed based on the 2.0-liter HEV system. As a result, the battery capacity was increased by 1.5 times compared to the previous model with almost the same battery pack size. Transmission efficiency was also improved, extending the distance that the Prius can be driven as an EV by 70%.