Toyota working on cheaper hybrid aimed at Honda Insight

According to a report by Nikkei business daily, Toyota is planning to produce a new low-price hybrid aimed at Honda’s Insight that was recently launched in Japan with prices starting under 1.80 million yen (under $19,000 USD).

Honda said that 18,000 units of the Insight were ordered during its first month of sales, which is more than three times the company’s monthly target of 5,000. Of course, that was a major scare for┬ádomestic rival Toyota.

Sources say the new and cheaper Toyota hybrid will carry a smaller engine than the Prius’ 1.5 liter.

Toyota’s new gasoline-electric hybrid is expected to hit the market as early as 2011 in Japan with prices to start 20 to 30 percent below the Toyota Prius which starts at 2.33 million yen (about $23,000 USD). Insiders said that sales may expand to other markets.

Toyota’s 2010 Prius goes on sale in May with a starting price tag of 2.05 million yen (around $20,000 USD).

– By: Omar Rana

Source: Forbes