Toyota Motor Corporation has developed the new compact-class hybrid vehicle (HV). This vehicle incorporates a new hybrid system for the improvement of fuel efficiency. For this system, a new Power Control Unit (PCU) is developed. The feature of the PCU is downsizing, lightweight, and high efficiency. In expectation of rapid popularization of HV, the aptitude for mass production is also improved. The PCU, which plays an important role in the new system, is our main focus in this paper. Its development is described.