"Toyota has found that in rare situations, the vehicle may not enter a failsafe driving mode as intended". 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.
A failsafe mode created to engage in the event of a hybrid system fault may not kick in because of a software glitch, causing the auto to stall, according to a company statement. The carmaker stated that no actual accidents have been recorded so far.
Vehicles sold in China, Africa, Oceania and other regions are also affected.
Power steering and braking would still work, but a stall at a fast speed could increase the risk of a crash.
Toyota said it had received three reports in Japan related to the problem by the end of September and reported them to the transport ministry.
Should this occur, the auto could lose power and stall, although functions such as the power steering, brakes and lights would still work.
To fix the problem, Toyota will update software in the vehicles.
Toyota did not say how many customers reported stalling incidents, whether there were accidents, or when customers could bring in their cars for fix.
In a statement, Toyota said: "The involved vehicles were created to enter a failsafe driving mode in response to certain hybrid system faults".
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The software will be updated for all involved vehicles at no charge to the owner. The problem would be fixed by means of a software upgrade that would take about 40 minutes, he said.
Toyota has issued several recalls in the past over issues including faults with floor mats, breaks and airbags.