Toyota states its "E-Four electric 4WD system that regulates a rear-mounted, rear-wheel-propelling electric motor and coordinates electric power distribution to all four wheels. An ECB (Electrically Controlled Brake system) provides efficient wheel-by-wheel brake control."

The full-size Alphard Hybrid MPV qualifies as an Ultra-Low Emissions Vehicle (ULEV), achieving levels 75% lower emissions than the Japanese government's 2000 benchmark. The 2.4-litre gasoline engine has been developed specifically for use in Toyota's hybrid systems and features a high-expansion ratio cycle that raises efficiency and reduces friction.

In 2006, a Royal Lounge Alphard was introduced. It is a luxurious, four-seat version of the Alphard.

The Alphard Hybrid uses "by-wire" technology that monitors brake pedal pressure and vehicle speed in order to calculate the optimum hydraulic pressure. By-wire works with the E-Four to maximize the collection of kinetic energy from braking for conversion into electric power.