Toyota announced that it will cut the prices of its latest Prius in order to compete with the less expensive Honda Insight. The base model of the third-generation Prius is priced beginning at 2.05 million Yen ($20,637), which is below the original 2.33 million Yen ($23,456) sticker price intended.
The Honda Insight has met with resounding success in terms of sales in Japan with its 1.89 million Yen ($19,027) introductory price. The new base Prius comes with an introductory price matching that of the mid-range Insight.
It was announced by Toyota that it will continue selling the second generation Prius together with the new model, with a price tag of 1.89 million Yen ($19,027) which is exactly the same as that of the entry-level Insight.
The price for the next generation Prius, which will hit markets this July, has not yet been confirmed, but speculations peg it at about $27,177.
Although that is $4,400 more than the Honda Insight, traditionally, however, Prius has not appealed much to budget-minded customers. In fact, last year almost 60 percent of Prius buyers in the UK purchased the top spec version with the base model only accounting for 25 percent.