Monday, March 23, 2009

Honda Insight: A threat for Toyota Prius?

Two Japanese automaker Toyota and Honda seem to be involved in a race in the hybrid car market in the aftermath of Honda’s new hybrid model Insight being hit the market. Toyota Prius has been a very successful hybrid model for the company in America, the largest hybrid market in the world. Honda Insight, providing same kind of performance and going on sale for a same price range, seems to have an instant impact on American hybrid market when it will be launched in America on Tuesday.

Honda Insight has already showed excellent prospect in domestic market (Japan) since its launch in February, outperforming Prius in terms of sales in Japan. Toyota did not have a very good year in 2008 in American market as recession hanged over USA. US car market has been struggling now and the demand for Prius has also been lowered over the last one year because of fall in oil price. Now that Honda Insight is emerging as a new threat for Prius, it is pretty much sure that Toyota would have to decrease the price tag of Prius in America.

Related article:

NY Times