Monday, May 03, 2010

Honda Now Focuses on Fuel Economy for Hybrid Market

Toyota Prius may be the most fuel-efficient car at the moment, but its competitor in the hybrid car market, Honda Insight, would beat Prius in terms fuel economy in future. That is what Takanobu Ito, Honda CEO, has recently vowed. Toyota is now leading the hybrid car market with a big difference from its competitors, but Insight has given a tough challenge when Honda introduced the second generation Insight in 2009. The biggest advantage of Honda Insight was its price. Last, it became the least expensive gas-electric hybrid car, and thus, putting a huge challenge for market leader Prius.

Toyota already sold more than 1.6 million Prius so far. It may not be easy for Honda to surpass Prius in the neat future. After beating Prius in price, Honda’s focus is now on mpgs.

Autoguide reported:

Honda CEO Takanobu Ito has recognized this issue and an overall complacency at the Japanese automaker and has vowed to do something about it. Stating quite frankly that he’s not “satisfied,” with the efforts of the company, he has vowed that the next generation Insight will top the Prius in fuel economy. Currently the Insight gets just 40/43 mpg (city/highway) compared to the Prius at 51/48 mpg. Ito is also urging haste, telling Honda’s engineers to bring the car to market quickly – suggesting that the current Insight may not last for a full four or five year cycle.

Well, it is pretty much clear that Honda would go all out to defeat Toyota Prius in the hybrid car market with its third generation Insight. So, it is high time, Toyota should also plan how to hold on to stave off Insight challenge.