Toyota's Prius hybrid remained Japan's top-selling car in July as government subsidies spur strong demand for fuel-efficient vehicles, industry figures showed Thursday. The petrol-electric Prius remained the best-selling vehicle for a second straight month with sales of 27,712 units, up from 22,292 in June, the Japan Automobile Dealers Association reported. Excluding popular mini-vehicles with engines of up to 660 cc, the Prius has been Japan's top-selling car for the past three months. Rival Honda is also enjoying brisk demand for its Insight hybrid, which sold 10,210 units in July. Sales of hybrids are getting a boost from government incentives in countries for drivers to trade in petrol-guzzlers for less polluting vehicles. Toyota and Honda are going head-to-head in the fast growing market. The Insight was the best-selling hybrid in April in Japan before being overtaken by Toyota's remodelled Prius. The Insight is more affordable, 'but the Prius wins in terms of fuel economy,' said Ryoichi Saito, an auto analyst at Mizuho Investors Securities. The Insight sells at 1.89 million yen (19,890 dollars) while the Prius has a price tag starting from 2.05 million yen. Automakers hope that the popularity of fuel-efficient vehicles, helped by government tax breaks, will re-energise the flagging auto market, which has been battered by the global economic downturn. Toyota said orders for its new hybrid-only Lexus HS250h, which was unveiled last month, had reached 8,600 units, far exceeding its monthly target of 500. 