Toyota Motor Corp's (7203.T) Prius hybrid was Japan's best-selling car in July for a second straight month, underscoring robust demand for fuel-efficient vehicles.
Toyota sold 27,712 Prius cars last month, up nearly 25 percent from June, industry data showed on Thursday.
Demand for gasoline-electric vehicles has surged in Japan, helped by tax breaks and subsidies under a government initiative to promote cleaner automobiles. Toyota has said customers placing orders now for the Prius will have to wait until at least April for delivery due to surging demand.
Other cars got a boost in July from the government incentives for fuel-efficient vehicles.
Suzuki Motor Corp's (7269.T) Wagon R minivehicle came in second with sales of 18,140 cars, followed by Honda Motor Co's (7267.T) Fit compact at 17,003 units, the data from the Japan Automobile Dealers Association and the Japan Mini Vehicles Association showed.
Honda's Insight hybrid came in seventh with sales of 10,210 cars.
(Reporting by Nobuhiro Kubo; Editing by Chris Gallagher)