Toyota Prius and Lexus hybrid surprising buyers after recall

Once Toyota's competitive advantage and stake in the automotive market, reliability is now Toyota's most tarnished and troubling attribute. After 3 malfunctions that have resulted in over 10 million recalls, a $16.4 million fine, and 58 deaths, Toyota can only hope to redeem its damaged reputation. The major blow, after blow, after blow has turned away loyal brand followers and trusted consumers, but has it really affected consumers' willingness to buy Toyota and Lexus hybrids?

Toyota had it all together when it came to hybrids. The Toyota Prius introduced the world to innovative technology and 50+ MPGs, all at an affordable price. With a market share of almost 50% of all hybrids sold in the US, few hybrids could even make a name for themselves.

Now, Toyota is at a crossroads where admitting its faults and paying to restore its reliable reputation are a must.

Already, 70% of the 2.3 million vehicles that needed the sticking pedal modification and 27% of the 5.4 million vehicles that had the floor mat entrapment problem have been fixed. According to Toyota, that is more than 120,000 remedies a week just on the vehicles with the sticking pedal.

The immediate action and Toyota's willingness to listen to consumers has made what could have been the worst three months when it comes to sales figures into a fairly successful quarter.

Sure, not every car has made a splash, but the the statistics are surprising.

Perhaps, Toyota's dominance with the Prius transcends more than just it's competition. Toyota's Lexus division expected to sell 20,000 - 22,000 Lexus HS 250hs, but has only been able to sell 11,228 of the luxury hybrid sedan, putting the vehicle well below expectations.  Toyota had high hopes for the upscale car, but with just about 1,000-1,500 units sold per month, Toyota will end up about a few thousand under the mark.

The Prius on the other hand continues to dominate and grow, despite the highly publicized recalls. In April of 2010, Toyota sold 12,555 Prius hybrids which is a growth of 49.7% from last year's April figures and the year-to-date total sales figures are collectively up 26.1%.

As Mark Templin, Vice President of the Lexus Division puts it, "I think we underestimated the power of the Prius brand."

It is important to note that Ford hybrid sales are up 19% from a year ago and Honda sales are down 10.3% from last April. Both have seen increases in hybrid sales year-to-date.

The numbers are somewhat astonishing considering all the flack Toyota has taken for the quality of it's vehicles.

While report after report kept surfacing and the brand image continued to get trashed, consumers continued to buy the Toyota Prius and other Toyota hybrids.

It seems Toyota has done just about everything right in the aftermath of all it's problems.