Toyota Reportedly Considering Lowering 2010 Prius Starting Price in Japan
By John O'Dell March 13, 2009Could Also Happen In U.S. to Compete with Lower-Priced 2010 Honda Insight
So much for Toyota's insistence that it doesn't see Honda's new 2010 Insight compact hybrid as competition for the larger and pricier mid-size Prius, which has long been the world's best-selling gas-electric car.
Japan's Yomiuri Shimbun newspaper is reporting that there's serious talk inside Toyota Motor Corp. of releasing a base model of the upcoming 2010 Prius that's 250,000 yen cheaper (about $2,575 at today's exchange rate) than the least expensive 2009 model Prius now sold in Japan.
U.S. Plans
The redesigned 2010 Prius is slated to go on sale in the U.S. in late May or early June and pricing hasn't been announced yet.
Toyota does plan, however, to hold up release of the base, or "standard" trim level of the new Prius for three to six months (marketing plans calls for the initial launch to include Level 2, 3, 4 and 5 models, but no Level 1) and a spokesman said this morning that it is likely to have less standard equipment than the other models and a price that is closer to the Insight's. Honda recently announced that 2010 Insight pricing in the U.S. would start at $20,470, including destination. The new hybrid goes on sale here March 24. The '09 Prius in the U.S. starts at $22,720 including the destination charge.
Hot Contest
The reason for the price-cut discssion in Japan is also to better compete with the Insight, which has taken Japan by storm in the month since it was released here, with Honda dealers booking a reported 18,000 orders.
While the bottom-of-the-line '09 Prius is now priced at 2.3 million yen, the base Insight went on sale Feb. 6 in Japan at 1.89 million yen, almost 18 percent less.
John O'Dell, Senior Editor
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