Toyota Should Maximize Prius Offerings
Toyota has the third-generation Prius coming up soon, a long-awaited update to its six-year old dominant hybrid offering. The expected base price has been set at $22,000. But here’s the rub. Honda just introduced a hybrid Insight going for $20,000. Yes, the race for hybrid king of the heap is still on.
Toyota has already come back on the heels of the Insight debut with promises of a hybrid Yaris — smaller and less expensive — and maybe on showroom floors by 2011. There’s also a rumor that they’ll keep the current Prius selling side-by-side with the new model. Maybe at a lower price? Right now word is the concurrent sales will only take place in Japan, but don’t be surprised if that’s not extended to the U.S.
Sure, Toyota kicked General Motors off their 77-year-old throne as world’s largest automaker, but they only did it by about 620,000 units. Their sales for March are going to be flat at best and potentially worse than the February numbers. Production will be kept low through June so they don’t get into a situation of inventory glut again.
Basically, if Toyota wants to stay on top, they need to work with what they have. The popularity of the Prius is undisputed and if they offer it in two flavors — kind of Prius and Prius-light — the public appeal would be undeniable coupled with the new Yaris offering.
That’s the one thing about getting to the top boys, there’s always someone nipping at your heels.