Lexus Is Already Six Months Behind

"Thanks to the green-car tax and a hybrid boom fanned by the Prius in Japan, we've already gotten 3,000 orders," Senior Managing Director Toshio Furutani said at the launch.

With a sales goal of 500 units a month, that puts them six months ahead with their new Lexus HS 250h, the first dedicated hybrid from Lexus. It's also the cheapest hybrid starting at 3.95 million yen ($42,460) in the Lexus line-up while also being eligible for the maximum 267,000 yen ($2,870) tax break in Japan.

The tax breaks have proven a boon to Toyota and Honda as they've raced to outsell each other there.  It's put hybrids on top of the sales charts and created massive waiting lists for the new Prius and Honda Insight.  Given the market right now, it's no wonder Toyota and Honda have begun focusing more on hybrids than ever before.