According to automotive industry analysts R.L Polk & Co., hybrid sales increased by 139 percent from 2004 to 2005, with Toyota/Lexus vehicles accounting for seven out of 10 hybrid purchases. While the Prius is no longer the hot commodity it once was (happily for consumers, waitlists are mostly a thing of the past), hybrid versions of the Highlander and soon, the Camry, should solidify Toyota’s position as the market-share leader.

Hybrid versions of popular gas-powered models aren’t always successful (witness the Honda Accord hybrid), but Toyota has the right idea with the Highlander. For starters, if you’ve been using the lack of passenger room and limited power as reasons for not buying a hybrid, you’ve just run out of excuses. Highlander is the first hybrid to offer seating for seven, and its standard V-6 engine paired with two electric motors produces a combined 268-horsepower.

Highlander Hybrid is available in two configurations, base and Limited. The base model comes well equipped with a third-row passenger seat, power adjustable driver’s seat, power windows/locks/mirrors, tilt steering, keyless entry and auto-off headlamps. A $1,770 option package gets you steering wheel audio controls, premium sound system with six-disc in-dash CD changer, a moonroof and fog lamps. Upgrade to the Limited and you get all of that, plus leather seating, wood grain trim, automatic climate control and a power-adjustable passenger seat for a base price of $38,495. The only option on the Limited is a navigation system that also includes a fuel-economy meter ($2,000). Four-wheel drive is also available, but the Highlander Hybrid is not intended for off-road use.

Inside and out, the Highlander Hybrid looks like the traditional Highlander. Visual cues like unique 17-inch alloy wheels and a Hybrid Synergy Drive logo on the rear tailgate are the only giveaways how it’s powered. Like its gas-powered sibling, the Hybrid’s interior is well designed with family-friendly features like 10 cupholders and lots of storage areas. On the downside, the second row folds flat, but does not flip forward, making access to the third row a considerable challenge.

Driving the Highlander Hybrid is enjoyable. It’s easy to maneuver and acceleration is excellent. I detected an intermittent, annoying “hiss” from the electric motor, which had me questioning my hearing or my sanity on more than one occasion, but was otherwise irrelevant to the drive quality.

In real world driving, I averaged fuel economy in the mid-20s, less than the stated miles per gallon but more than the gas-powered hybrid (which averaged mileage in the high teens during a weeklong test drive). That gas savings won’t make up for the approximately $8,000 price differential between the hybrid and regular Highlander, but it may be worth the price to keep the environment just a little bit cleaner.