The Auto Writer

Not willing to allow Honda to gain the upper hand in the entry-level hybrid vehicle market, Toyota is striking back against the all-new Insight, by pricing the 2010 Prius at 2.05 million yen (US$20,750) in Japan. That amount is more than three thousand dollars less than what the next generation Prius was expected to sell for when it becomes available for sale in the United States on May 18th.

A Pricing Pull Back For The Prius?

Though pricing for the Toyota Prius hasn’t been announced for the US market yet, a $24,000 price point was hinted at until recently. That price is about two thousand dollars more than the 2009 model, but it appears that Toyota will choose to fight Honda with a lower price in the US market too.

Ever since rolling out a preproduction version of the Honda Insight at the 2008 Los Angeles Auto Show last November, Honda has been boasting that its all-new hybrid would be sold for thousands of dollars less than the Toyota Prius. With a base MSRP of $19,800 plus destination, Honda effectively lowered the floor to attract a wider range of buyers. Since going on sale in March, demand for the Insight has been strong, despite gas prices hovering below $2 per gallon.

Size, Mileage Edge To The Toyota Prius

While it is easy to compare the Honda Insight to the Toyota Prius, there are some important differences between the two models. The Prius is larger and more roomier than the Insight and delivers better fuel mileage. Insight EPA fuel estimates are 40 mpg city/43 mpg highway while the Prius will deliver 51 mpg city/48 mpg highway.

The Honda Insight was the first hybrid model to be sold in the US when the original two seater went on sale in 1999. Soon thereafter, Toyota entered the fray with the Prius and quickly surpassed Honda as the largest seller of hybrid vehicles in the US.

After the Insight was retired, Honda offered an Accord hybrid as well as a Civic hybrid, dropping the Accord model quickly due to lack of demand. Toyota continued to expand its hybrid offerings by rolling out a hybrid Camry and Highlander along with several hybrid Lexus models.

Related Reading — Next Gen Toyota Prius Unveiled