In this mode, the car's speed is limited at 30-45MPH, which prevents further damage to the engine but allows the driver to vacate the road.
The recall applies to 1.25 million vehicles in Japan, 807,000 in the USA, 290,000 in Europe and 3,000 in China, with the rest across the globe. In isolated cases, the automaker said that the vehicles stalled, although their power steering and brake systems still functioned. This could cause the vehicle to stall, which could increase the risk of a crash when driving at high speeds. If that happens at higher speeds, there is an increased risk of a crash.
Three malfunctions related to the issue were reported in Japan, with no accidents caused.
Vehicles in Europe, China and other regions are also affected.
Central government cuts fuel prices by Rs 2.50 a litre in India
However, very soon, the prices can be reduced by Rs 5 as well! Any further revenue loss, however, could widen the fiscal deficit. On Thursday, the price of petrol was raised by 15 paise a litre while that of diesel was hiked by 11 paise a litre.
Satoru Takada, an analyst at Tokyo-based research and consulting firm TIW, said the impact of the recall couldn't be assessed immediately but it "at least raised concerns as Prius is Toyota's leading brand".
The vehicles were involved in an earlier recall that did not fix the previously unanticipated problem that is being addressed now, the company said in a statement.
Toyota will send recall notifications via first-class mail when the necessary software updates are available. Friday's is the second Prius recall in the last month.
More than 55,000 hybrid cars have been recalled by Toyota in the United Kingdom due to possible stalling problems.
It's one of the largest recalls for Toyota unrelated to Takata Corp airbags or 2009's unintended acceleration crisis.