Toyota May Cut Price on Third Generation Prius to Compete with New Honda Insight

GCC has a Nikkei report on Toyota cutting the price of the Prius to fight back against the new Honda Insight pricing.

Toyota plans to cut the price for the current model to around 2 million yen. Rival Honda is slated to release the Insight hybrid in February, with a starting price of less than 2 million yen.

I thought this might happen when Honda brought the Insight to market and, if this report pans out, it's good news for anyone interested in getting good fuel economy out of their cars.

For years, the Prius been half of the hybrid market and has become one of the top ten cars sold in the US. But it was a hollow title in some respects because there was no real competition.

Despite many calls for a competitor with the Prius, there just hasn't been any real options to it. The old Insight, despite it's phenomenal fuel efficiency, was just a two-seater. There were no other 'dedicated' hybrids on the road.

Other hybrids, whether full or mild, didn't approach the Prius mpg numbers.

Now Honda has set its sights on the Prius and it looks like Toyota may be feeling the heat even before the Insight comes to market.

And it's the consumers who are going to benefit from it.