Toyota will sell current Prius alongside third-gen model in Japan

Posted Thu Mar 26 2009 7:17 AM by Jeremy Weber

Second-generation Toyota Prius
Current Toyota Prius will still be in production when third-generation model arrives

Within days of unveiling the Insight hybrid concept at last year’s Paris Motor Show, Honda CEO Takeo Fukui boasted that the production version would arrive on the market priced below $20,000. He was spot on as the new Insight hybrid is currently on sale from $19,800, undercutting the current Toyota Prius which is listed at $21,500.

However, Toyota has now unveiled a bigger, more powerful, better equipped, and most importantly, more fuel-efficient, third-generation Prius, and although pricing details are yet to be revealed the new 2010 model will almost certainly be more expensive than the outgoing one.

To overcome this problem - at least in Japan - Toyota will reduce the price of the current Prius to match that of the Honda Insight and allow the third-generation Prius to sit at a higher price point in an effort to boost profit. The information comes from Toyota president Katsuaki Watanabe, who explained that since the cars have different size engines – 1.5L and 1.8L – demand for the two different models should “co-exist”. Watanabe refused to say if the same practice would be used for other markets, but according to Reuters Toyota execs in the U.S. and Europe have said the current model will be discontinued when the new one comes in.

Selling more than one version of the Prius would fit in with Toyota’s desire to possibly launch a family of Prius models instead of the single car. Furthermore, it would also pave the way for the introduction of a more expensive plug-in hybrid version of the Prius, which Toyota is expected to launch next year.

The outgoing Prius has a fuel-economy rating of 46mpg, the new 2010 model is claimed to return 50mpg (our own tests have shown it to actually be much higher in some circumstances), while the new Honda Insight has been EPA rated 40mpg in the city and 43mpg on the highway. How this will affect the mind of buyers is still to be seen given that the all-new Insight would be competing with a car that is essentially six years old.

Gallery: 2010 Toyota Prius

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Gallery: 2009 Honda Insight Hybrid

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Reader Comments

  • Thu Jan 22 2009 7:32 AM

    azlan says

    it takes around 3 ships and days of truck driving to get the parts needed to create the prius, now tell me whats worse for the environment: a prius or an amg? studies show that the amount of damage to the environment that it takes the trucks and ships to get the parts needed to make a prius, could never be made up for the good that the prius will actually do.. so please try to use local materials, if you cant think of something else.

  • Thu Jan 22 2009 8:25 AM

    JSH says

    All vehicles source parts from around the world. Yes, local sourcing is the solution but one that the entire industry needs adopt.

    I've read that Toyota plans to sell both vehicles concurrently but I'm still doubtful that this will happen in the US. The Nikkei article also said that the lower priced 2nd Gen Prius would have a simplified interior and be sold to "corporate users". It sounds to me that they will continue to make the 2nd Gen Prius for taxi fleets.

  • Thu Jan 22 2009 9:27 PM

    azlan says

    yes i know all cars do that but the prius is just too much for claiming to be an "eco car", but yes all manufacturers should strive for local materials. and i think with research we could find different ways of using fuel other than burning it? i dunno where all smart we could do something i reckon...

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