The RAV4, which is also sold with petrol versions, has led the market for the past two months - the first SUV to become the country's best-selling vehicle.

Sales of 4405 hybrid RAV4 variants in August mark the first time that the hybrid-powered version of any model has outsold every other vehicle available in the country.

Bathurst Toyota sales consultant Paul Welsh said he has received plenty of enquiries for the RAV4.

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"On average, I'd probably get about six enquiries a day," he said.

"People are seeing the way the world is going and it's a good way to transit. It has the benefit of being an environmentally-friendly car, without the need to plug it in."

Mr Welsh explained that the RAV4 alternates between the petrol and electric engine depending on how you're driving.

"I explain it as if you're going the M4. You're in cruise control on 110 kilometres, so the car realises you're not doing much and switches to electricity," he said.

"When you put the foot down to overtake someone, it'll then switch over to the petrol.

"The electric engine is charged by a battery and a tank of fuel could last for up to 1100 kilometres."

Toyota Australia Vice President Sales and Marketing, Sean Hanley, explained the surge in demand for the company's hybrid vehicles had been having a big impact on the industry.

"Seeing a Toyota hybrid become Australia's best-selling car was a distant dream when we introduced the technology to Australia almost 20 years ago with the original Prius," he said.

"It took us more than 17 years to deliver the first 100,000 hybrids in Australia, but it has taken us just 16 months to sell more than half as many again with total hybrid sales now exceeding 155,000 vehicles.

"You could say that, after almost 20 years in the market, our hybrid technology has become something of an overnight success."

RAV4 is Toyota's top-selling hybrid so far this year, displacing Corolla which led hybrid sales in 2019.