Could new Honda Insight pricing lift hybrid sales, start price wars?
The first step towards cheaper hybrids?
Will Toyota follow?
Not that long ago Toyota promised a bare bones Prius with the cheapest hybrid price tag thus far. It still hasn’t happened.
However, now that Honda is going to lower the price of the Insight hybrid by $1600, will Toyota finally follow up on this plan?
The base 2011 Honda Insight will now cost $18,950, $1600 less than the base 2010 model, but it is a pretty base model. According to MotorTrend, in “a base Insight, you won’t find cruise control, a security system, center console with armrest and storage compartment, floor mats, or a USB audio interface. A two-speaker AM/FM/CD sound system replaces the LX’s four-speaker unit — the top-line EX has six speakers.”
That’s pretty base.
Anyway, a base Honda Civic Sedan costs $15805, a difference of about $3000 compared to the Insight. According to the EPA’s data that means an Insight hybrid driver will recover the extra hybrid costs in about 6 years.
That’s not great, but it’s not bad.
On the other hand, a base Toyota Prius starts at $22,800, although the base Prius offers far more amenities than a base Insight. That’s $4000 more than an Insight hybrid and $7000 more than a base Civic.
While the Prius is more efficient than the Insight, it only saves owners about $200 per year in fuel costs. Thus, while this isn’t an apples to apples comparison in terms of features, etc., it will take a base Prius owner an extra 20 years to recover their hybrid costs versus the Insight hybrid.
I’d say that a new cheaper Prius better be on deck.
Hybrids have achieved 2.3 percent market share as of last month, including fleet sales and government sales – 1/4 of Ford and GM hybrids. That means less than 2 percent of buyers are buying hybrids – according to a a plethora of studies – because they don’t see them as cost-effective.
Facts are facts and the facts demonstrate that cost-effectiveness is key if greater market penetration is to occur.
Same old idiotic comparison based on mpg ratings.
What is the maintenance difference?
Presitge factor?
Resale factor?
Driving comfort factor?
It is not all just MPG/ ROI.
If that is your only factor, drive a golf cart.
And for the record, I average about 63 MPG in the PRIUS
It seems hard to believe the Alpha Prius isn’t a done deal, although I also like Venza idea.
And while I fully agree that Honda’s hybrid powertrain needs a little extra EV bang, I really do hope their pricing puts some pressure on Toyota to either reduce pricing, or at least offer a bare bones Prius – a move that is long overdue in my opinion.
Honda needs another generation of their hybrid drivetrain to evolve. It has to have a better EV mode to compete with Toyota’s. Creature comforts are one thing, but if you’re very sensitive to fuel efficiency and plan to operate the vehicle for the better part of a decade, the drivetrain is key. Factor that satisfaction (not just fuel $$) into the equation as well.
I love my Accord and the Acura Integra I had before that. Honda makes a comfortable and dependable car and I’ve been pleased with both. But our ‘06 Prius has been great. Not as comfortable, but very practical and if my ‘03 Accord hadn’t worn so well and my kids weren’t growing so fast, I’d be replacing it with a new Prius, despite liking Honda better. If I ever replace the Accord (yes, ever) it would be with the Prius Alpha (assuming it materializes). Better yet, if they could lower the design of the Toyota Venza and lighten it for better gas mileage, put in a 3rd row of seats, and install the Synergy Drive, you’d have a family friendly, efficient people mover.