According to a report by Japan’s Nikkei newspaper, Toyota and Honda are making an estimated profit of about ¥300,000 ($3,100 USD) on every hybrid they sell. That is pretty close to what they make on small gasoline vehicles as well.
Nikkei said that if Honda sells 200,000 units of the 2010 Insight Hybrid in the first year, the company could generate more than¥350 billion ($3.6 billion USD). Honda is estimating a gross profit margin of more than 15 percent on each Insight. The gross profit on Insight sales is projected to come around 60 billion yen ($622 million USD) in the first year (¥300,000 per unit).
The Japanese publication said that Toyota had earned a gross profit of about ¥100 billion yen (US$1 billion) on its second-generation Prius hybrid in 2008.
– By: Omar Rana
Source: Green Car Congress