Honda Considers Offering Two Hybrid Cars Priced Lower Than Its Insight Hybrid

With Toyota's Prius proving strong competition to its recently released Insight hybrid, Honda says the automaker is weighing the possibility of introducing two hybrid cars that will be priced lower than the Insight (pictured ).

The low-emissions Insight, rated by the U.S. government as getting 41 miles per gallon in combined city and highway driving, is priced from $19,800 to $23,100. By comparison, Toyota's 2010 Prius, which averages 50 mpg, sells for $22,000 to $31,770. 

As we reported Monday, Honda said first-year U.S. sales of the fuel-efficient gasoline-electric Insight appears likely to miss the automaker's target by at least 30 percent. 

U.S. sales of the model, which first started appearing in American dealerships in March, had been expected to reach 90,000 vehicles by March of next year. That forecast has been revised to no more than 60,000 vehicles.

Earlier today, Honda President Takeo Fukui told the Asahi Shimbun newspaper that Japan's No. 2 carmaker by volume was considering adding the cheaper hybrids to an already announced line-up of hybrid vehicles, including the CR-Z hybrid coupe, and hybrid versions of Civic and Accord. Fukui did not reveal the timeframe for the launch.

This news follows the announcement last month that Honda was expecting to launch a gasoline-electric hybrid version of its Fit B-segment model in fiscal year 2010/11. Since Honda launched its Insight it has enjoyed strong sales in Japan, despite declining demand for its other models.

However, the Insight has started facing strong competition from the Prius in Japan as well as in overseas markets, despite being cheaper than its rival model.

Automotive experts at IHS Global Insight reported today that due to declining global vehicle demand, they expect vehicles with hybrid powertrains - especially those with cheaper price tags - are likely to remain a bright spot for the automotive industry.

As we saw last year when oil prices were high, it's likely demand for the hybrids will rise with the oil prices.

"With the launch of the cheaper hybrid models, Honda could strengthen further its foothold in the hybrid car market," the automotive experts said. "However, competition between hybrid vehicles is likely to intensify in future when other automakers will come up with their own hybrid models with cheaper price tags."

Scott Doggett, Contributor

Posted by

Scott Doggett June 16, 2009, 10:24 AM

Permalink

Categories:

Emissions, Fuel Economy, Honda, Hybrid, Toyota

Technorati Tags:

Emissions, Fuel Efficient Cars, Honda Insight, Toyota Prius