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Wednesday, July 29, 2009

They're coming! Small hybrid cars, at least from Japan

Are small and compact hybrid cars are a critical piece of the future of the auto industry. Or, are American automakers right to ignore this segment? Is history repeating itself?Will America compete?

When it comes to hybrid cars, it's still all about the Toyota Prius. Surprisingly, however, after a decade on the market, only Honda has sought to challenge the Prius. American automakers, on the other hand, seem inclined to eventually sell some new, conventional small cars to both compete with the Prius and to help meet tougher CAFE standards.

Still, after decades of small car market domination in America, Japanese automakers again seem to be taking a far more aggressive approach to the small vehicle market. Quite simply, small cars are not enough. Ultra-efficient small cars seem to be Japan's next focus.

For instance, Toyota's Yaris and Corolla platforms are already being upgraded for hybrid production, and numerous small and compact hybrids are now inevitable. Likewise, Honda will soon offer hybrid versions of the Fit and the CR-Z.

Small hybrids, priced well under $20,000, will soon hit American shores. Yet, much like the American response to the Prius, American automakers seem to believe this front requires no response.

For decades US automakers have completely misunderstood and underestimated the small car market in America. Is history set to again repeat itself, or is it Honda and Toyota that have misjudged the importance of small hybrids?

Labels: Hybrid Vehicles, toyota prius

posted by Dahcredyns at 9:41 AM

7 Comments:

Blogger LB said...

This post has been removed by the author.

12:12 PM  
Blogger LB said...

Not that they did not believe. They did not want this market (as less profitable).
They trained people, which are now not especially fond about small cars - this is probably the reason why Honda insight is not selling well in US. Things, however, are changing rapidly. I see more and more people buying VW beetls, Minis and Smarts (though I personally think this cars are not especially good in terms of both price and fuel efficiency). For $25,000, I would prefer to bye a mid-size hybrid than a small Mini.

12:14 PM  
Blogger seren said...

Yes Japan was willing to take a risk decades ago, when everyone laughed at their 'stupidity' because gas was around 1.00 a gallon.
Even Japan is suffering from blowback of American greed in financial markets however and if it were not for major incentives from dealers and govt for all hybrids, both toyota and honda would be in deep deep trouble right now.
I agree LATE 2010 will be majical time for quality affordable hybrids! yea
I will wait till 2011 and get a slightly used FULLY LOADED hybrid and get best of both worlds - a world class loaded low mileage full warranty hybrid below 20k!
Ha :)

12:46 PM  
Blogger Dahcredyns said...

small cars, decades ago, were still good enough to turn honda and toyota into major automotive players.

profit margins, certainly, were a huge reason. plus, some arrogance and ignorance on the part of auto corporations as well.

as far as the Insight. i think Honda needed to take a little more time refining the Insight, but i still agree with your points on mini versus a mid or small hybrid, lb - even thoug i still consider the Prius to be a small car, despite its mid-size rating.

10:48 AM  
Blogger Dahcredyns said...

seren-

what's interesting is that Toyota took hybrids seriously because it was worried that Detroit would get too far ahead in alternative technology. detroit, however, only investigated hybrids because the government gave them the money to do so. once that money ran out, Detroit instantly shelved those concepts because they knew the profit margins were years away.

fortunately, Toyota to wise enough to look beyond the next quarter or year.

10:53 AM  
Anonymous Anonymous said...

Well im ready for the soon to be released super cute super energy efficient SCION IQ that will get around 42/52! Base around 13k and yea Toyota will nickel and dime the 'option packages' to make even modest equipped drive our 17500 but what the hec its super cute and reliable toyota product :)

1:48 PM  
Blogger Dahcredyns said...

I think the Scion IQ is an interesting offering, despite the fact it isn't a hybrid. Nonetheless, I'd love to see a hybrid version. If the non-hybrid can hit 40 on the EPA's city cycle, you'd probably achieve 60 - 70 with a hybrid. That would be awesome for urban commuters.

2:27 PM  

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