Cheaper Honda Insight drowns amid 2010 Toyota Prius buzz

Honda is the number two automaker in Japan and it’s very interested in chipping away some of Toyota’s hybrid marketshare. Primarily that means selling a car that competes with the Toyota Prius, which is enjoying another splash of buzz given its updated model available in 2010. For many people hybrid cars are synonymous with the Toyota Prius which means that Honda’s updated Insight will need a keen marketing push, despite its cheaper price tag.

This is a great example of how good marketing can sustain a product despite price wars instigated by competition. The new Honda Insight EX starts at about $20,000 compared to the 2010 Prius which jumps up to $22,000. Largely the price difference is fueled by brand equity, and that could be making Honda uncomfortable with previous sales forecasts.

Originally Honda predicted “. . . annual worldwide sales of 200,000 units for the Insight, which went on sale first in Japan in February and in late March in the United States,” according to Reuters. But recently the company has focused its efforts primarily in Japan, partially due to poor exchange rates.

Overall the hybrid market took a nosedive when gas prices descended from their peak in 2008. Now that trend is reversing, which means the demand for fuel efficient vehicles is expected to climb steadily back up as well. Toyota and Honda are well poised to meet that demand with hybrid cars priced for the average worker and packed with a compelling set of features.

Of course, Toyota has so many loyal fans and glowing reviews that a person new to the hybrid car market will have to be risk taker to even consider the Honda Insight. And, the 2010 Toyota Prius has a few unique options available like a solar panel installed on the roof.

Other competition is incoming as well. Although General Motors is currently steeped in bankruptcy, the timing for its 2010 Chevy Volt may prove fortunate for the company if gas prices continue to rise. That could pull away some consumers who may otherwise have purchased a fully loaded 2010 Toyota Prius or Honda Insight.