The 2001–2003 Prius for the United States market was powered by a 1.5-liter 4 cylinder gasoline engine, a permanent magnet AC electric motor, and a 274-volt nickel-metal hydride (Ni-MH) battery pack. The gasoline engine developed 70 hp (52 kW) and 82 ft·lbf (111 N·m) of torque. The electric motor generated a maximum of 44 hp (33 kW) and 258 ft·lbf (350 N·m) of torque. Japanese versions were less powerful.

The engine and motor power were increased over the previous model. Air conditioning and a continuously variable transmission were standard equipment.
In the United States, the NHW11 was the first Prius to be sold. The Prius was marketed between the smaller Echo and the larger Corolla. The published retail price of the car was US$19,995. The California Air Resources Board (CARB) classified the car as a Super Ultra Low Emission Vehicle (SULEV).
European sales began in September 2000.
The official launch of the Prius in Australia occurred in 2001 after the Sydney Motor Show, although sales were extremely poor until the NHW20 model arrived.