Why is Toyota about to become the world's number-one automaker? Look no further than the 2007 Camry Hybrid. It's an incredible combination of fuel economy, roominess, and fit and finish. About all that's missing is a sense of the automotive character found in competitors or in the sibling Prius Hybrid. But enough people seem not to mind that the Camry has been the best-selling car in America for most of the past decade.

The hybrid premium runs about $2,400 more than a similar gas-engine-only Camry. You get a four-cylinder gas engine, electric motors/generators at the two front wheels, a continuously variable transmission, and a big nickel-metal hydride battery pack that takes up a quarter of the trunk. You also get the ability to start up using only the electric motor; at stoplights, the gasoline engine shuts down, and the battery provides power for lights, climate control, and other accessories.

On our test car, done in Jasper Pearl (think split pea soup as a metallic paint, only nicer), the engine shuddered as it revved up on restarts more than other hybrids do and made odd mechanical noises under hard acceleration (all hybrids do that). A week of mixed (not gentle) driving returned about 35 mpg. But acceleration was more than adequate. (Toyota says it got 36 mpg on a 2,500-mile cross-country trip.)

The Denso navigation system has more tech features and is consequently harder to use than those found in Toyotas past, but the learning curve isn't terrible. On our test car, it was a bargain: $1,200 for DVD navigation, premium audio, and Bluetooth, according to the window sticker. Unfortunately, we couldn't replicate the price online (at an otherwise easy-to-use site), which pointed only to a $3,910 package that also mandated leather seats, a moonroof, and premium JBL audio.

Other standard tech goodies abound: a keyless-start fob (standard), a "multi-info" color LCD standard (that's why navigation can cost $1,200), a line-in jack for music players, six airbags, tire pressure monitoring, and the ability to attach XM or Sirius Satellite Radio.

The LCDs that show information about the hybrid engine, power use, and power regeneration are a bit busy, with the energy lines flowing into or out of the battery, engine, and front wheels. In my opinion, it's a sparkly toy included more to impress new owners and the neighbors than to provide information you really must have, especially since there's also an economy gauge in the instrument cluster.

The Camry's interior is spacious: No one feels cramped, and everything fits well. Three can ride comfortably in back. At the same time, some of the materials on the entry-level model have the feel of affordable quality—though never cheapness—and there's a lack of character compared with, say, a Volkswagen Passat. But sometimes you want a car just for transportation, in which case you'll be happy with great fuel economy and the near certainty that you won't need to make a single warranty repair in your first year of ownership. Anyway, if Toyota fabric interiors feel Spartan, you can add leather upholstery and have an affordable variant to the Lexus ES350. Toyota opted to keep the useful folding rear seats in the Camry Hybrid, even though the battery takes up nearly half the height of the opening.

The center console bristles with holders for all the things you typically carry around, such as cell phones, small notepads, lip balm, and drinks. That's brilliant. But the center stack and its electronics have some design problems. The satin chrome dials are smooth and hard to grasp. The satin chrome buttons are small and hard to push, and the labeling is equidistant between the button above and below (it goes with the button below). The LCD lacks a hood and washes out in direct sunlight.

On the road, the Camry Hybrid is like a regular Camry, except a little noisier and more mechanical when you're accelerating hard, compared with the V6. That's the case with most hybrid engines. Cruising at highway speeds, you won't notice a difference from the base four-cylinder gasoline engine (which the Hybrid uses) or the more powerful V6. Toyota's Hybrid Synergy Drive powerplant is rated at 187 hp, based on a 147-hp gasoline engine and a 45-hp electric motor (note that rated horsepower is not the sum of the two powerplants). The Camry Hybrid can start up and drive off at speeds up to about 20 mph under battery power alone.

On long trips, the miles melt away. The seats are comfortable, although thigh support could be improved, on the off chance you want to zoom around a corner. Audio quality is good; you can plug in your own music player, and the navigation system keeps you on track. Don't plan to key in a new route while you're underway, however. Toyota, like most automakers (except the Germans), locks out many of the navigation-input controls when you're driving, though it does let you switch to a different preset destination.

Toyota's Web site works well and is easy to navigate—much like the car itself. When we tried to recreate our test car, though, we couldn't get exactly the same combination to come up; this is for a 2007 model that was introduced in mid-2006. Toyota isn't alone in this kind of online problem.

There is no sport package for the Camry Hybrid; if you want that, go for the 268-hp V6 gas-engine Camry SE with variable valve timing. If you're looking for a bit more warmth in the car, consider leather seats, which actually means $3,900 for leather, plus a sunroof, plus DVD, plus a premium audio package.

And since Toyota is so successful at selling hybrids, the government tax credit on this car (initially $2,600) drops 25 percent after September and fades away within the year. Recent studies indicate most drivers should make back their hybrid premiums even without tax incentives, though.

So long as you need transportation, not an extension of your ego, the Camry, either hybrid or gas, is hard to beat. The hybrid makes sense especially if you do a lot of city driving with frequent stops and starts, which regenerates the hybrid battery. If you're a highway-only driver, stick with the 185-hp gasoline four, and if you want more pep and sportiness, go for the V6.

Overall, Camry Hybrid's pluses far outweigh the minuses. This is a world-class car that's excellent at conserving the world's energy resources.

For a review of the Toyota Prius, click here.

Play Slide Show/All Shots (11)

$26,480.00 - $30,430.00

A roomy five-passenger hybrid with very good fuel economy. You'll have to learn to live with the minor hybrid drivetrain noises and noticeable engine restarts. Other than that, and little depth of character, this is a near-perfect car.

Great fuel economy. Roomy cabin. Reasonable power. Near flawless fit and finish. Affordable navigation system. Easy-to-negotiate site.

Some trunk space lost to hybrid batteries. Odd mechanical noises (common to hybrids) and shudder when engine starts (uncommon). Build-your-own site missing some options. Not much personality, especially in entry models.