Sales of Honda Insight Hybrid Lethargic in U.S. and Europe, But Strong in Japan
By Scott Doggett December 16, 2009
Despite its popularity in Japan, Honda Motor Co.'s Insight hybrid has been selling poorly in the U.S. and Europe.
At right, the 2010 Honda Insight.
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By the end of November, Japanese sales had already surpassed their target, with about 80,000 vehicles chalked up. But U.S. and European sales stood at only around 20,000 vehicles and 15,000 vehicles, respectively.
There are three main reasons for the lackluster results in this side of the Pacific, according to the automotive experts at the forecasting firm IHS Global Insight.
"Firstly, crude oil prices in the United States have been stable at around $70 to $80 per barrel," the experts said in a brief statement sent to us today. "Secondly, the Insight hybrid is a bit too small for U.S. preferences and is witnessing strong competition from Toyota's new Prius hybrid, which is bigger than the previous version. Thirdly, buyers in the U.S. market traditionally do not rate fuel efficiency as a primary attribute for vehicle performance."
The stable gas prices are indisputable. Whether the Insight hybrid is too small for U.S. tastes is an opinion, but unfortunately it is the opinion of Honda executives - and executives at Toyota as well.
In part to satisfy the perceived desire for big cars, Toyota made its new Prius hybrid, introduced in May, bigger than the previous versions.
The third reason - is that Americans are less hybrid-inclined than are Japanese consumers - is a fact. In Japan, hybrids now account for more than 10 percent of new car sales. In the U.S., hybrid sales are struggling to top 3 percent market share.
Fortunately, Honda still plans to expand its hybrid lineup next year, with the CR-Z sports coupe and a hybrid version of the Fit subcompact. But like the Insight, both are small cars.
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Since the CR-Z is smaller and 20% less fuel efficient that would mean - according to the reasons mentioned here - the CR-Z wouldn't be a big hit either.
The Fit could be but Honda said for now they decided to only sell it in Japan. Maybe they change their mind if they give up on the Insight for the US (since Fit probably is too much competition for the Insight).
Also I wonder if there will be a Civic Hybrid redesign next year?
I think what Honda should do is add hybrids to their Acura's since that's where customers wouldn't mind spending little bit more (e.g. RX sells pretty well).
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