Of a total of about 2.43 million vehicles affected, 94% are the Prius and its derivatives, with the hybrid version of the Auris compact hatchback making up the remainder, Toyota spokesman Jean-Yves Jault said by email Friday. See the chart below.
Another one million were sold in Japan, 830,000 are in North America, 290,000 in Europe, 3,000 in China, as well as other countries across the world.
In recent years, Toyota has had to recall large numbers of cars for various reasons, including faulty airbags supplied by vehicle parts firm Takata.
Toyota Ireland also said that there are no reported incidents in Ireland.
Power steering and braking would still work, but a stall at a fast speed could increase the risk of a crash.
"There have been no incidence of injury or accident in Australia because of the fault", a Toyota spokesperson told 9NEWS.
"Once the latest software is available, Borneo Motors (Singapore) will update the software for all involved vehicles at no charge", said Borneo Motors.
The company says the issue differs from problems with the Prius fail-safe mode that were addressed in the 2014 and 2015 recalls.
"Toyota has found that in rare situations, the vehicle may not enter a failsafe driving mode as intended".
Should this occur, the vehicle could lose power and stall, although functions such as the power steering, brakes and lights would still work.
Toyota has sold more than 10 million hybrid gasoline-electric vehicles globally, including the Prius, since 1997.