Global economic recession is gradually getting worse and its effect on the global car market is not a surprise anymore. Big carmakers are experiencing falling demand in the major markets and the companies like Toyota are facing operating loss. Naturally, the market has somewhat become too difficult to survive on for the carmakers. That is why, car makers are now turning to hybrid car which are fuel efficient as well as environment friendly. Demand for hybrid car is gradually increasing, and many car companies have already focused on hybrid car market, making it a very competitive category.
It has been reported that Toyota is going to cut its Prius hybrid car by $1,000, and thus, making the new price tag of $21,000. Bloomberg News cited an unnamed person to reveal this information. Toyota has taken this initiative mainly because of intense competition from fellow Japanese automaker Honda in the hybrid car market. Honda’s newly launched Insight hybrid car has become a threat for Toyota’s Prius. Insight is now available with a starting price of $19,800.
Toyota will reportedly announce the prices of 2010 models and the upcoming car model which will hit the market next year. Reports available in the media also suggest that Toyota is going to come up with a number of low-cost car models in 2010. This is definitely a good initiative to offer cheap car models amid the ongoing economic slump. Now, let us see if Toyota can improve their current condition in global market.
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The Wall Street Journal
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