Toyota may sell current Prius alongside third-gen model

Posted Wed Oct 22 2008 6:16 PM by Jeremy Weber

Current Toyota Prius could still be in production when third-generation model arrives next year

Toyota’s third-generation Prius petrol-electric hybrid is expected to arrive in showrooms in April 2009, and according to a recent report the current model could still be produced alongside it and offered as a cheaper alternative. While the Chevrolet Volt plug-in hybrid is still several years away, Honda’s upcoming Insight hybrid could pose an immediate threat to Toyota’s latest Prius.

Honda has confirmed that its new Insight will come to market in the first half of next year and would be priced significantly below most hybrid vehicles on sale today. This means that it could undercut Honda’s own Civic Hybrid, which starts at $22,600, as well as the current Toyota Prius, which is listed at $21,500.

"I want to bring it down to the range of 2 million yen ($18,864)," Honda CEO Takeo Fukui revealed at the unveiling of the Insight Concept at the recent Paris Motor Show.

The 2010 Prius will be bigger, more powerful and more fuel-efficient than the one it replaces and Toyota is unlikely to reduce its price below that of the current car. Auto Motor and Sport reports that Toyota will reduce the price of the current Prius to match that of the upcoming Honda Insight and allow the third-generation Prius to sit at a higher price point in an effort to boost profit. This would also fit in with Toyota’s desire to eventually launch a family of Prius models instead of the single car.

This also paves the way for the introduction of a more expensive plug-in hybrid version of the Prius, which Toyota is expected to launch late next year.