Honda, Toyota make $3,100 profit on each hybrid sold
by Sebastian Blanco on Apr 28th 2009 at 7:10PM 
The whole Insight/Prius price war thing has been settled. We know that the cheapest 2010 Toyota Prius will be $21,750 and the lowest-cost 2010 Honda Insight will be $20,470. Hybrid buyers win because of the competitive price drops, but it turns out that both automakers are also winners. According to the Japanese newspaper Nikkei (via Green Car Congress), each hybrid that Honda and Toyota sell earns the respective company about $3,100 in profit. Of course, Toyota also sells the Lexus hybrids, which bumps up the average, and the numbers are calculated using 2008 sales of the second-generation Prius, but this is still good news for the Japanese automakers. In fact, Green Car Congress says that the companies make as much money on each hybrid as they do on each small, gasoline-engined vehicle they sell. With numbers like that, there's no reason to expect the "hybrid for everyone" (the Insight) and the world's best-selling hybrid (the Prius) to go away any time soon. Wonder what Saturn thinks of all this?
Gallery: 2010 Honda Insight
Gallery: 2010 Toyota Prius
[Source: Nikkei via Green Car Congress]
Reader Comments (Page 1 of 2)
NotEnough4DaLatest 1:52AM (4/29/2009)
With financing and maintenance, they stand to make way more than that.
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Anik 8:21PM (4/28/2009)
my uncle just got the new insight. I'm completely sold on it. The prius now seems to just get ugglier to me
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Herm 8:53PM (4/28/2009)
they seem identical to me
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ShaunneyCakes 9:18PM (4/28/2009)
Don't worry, the pro-SUV trollers on this site will STILL claim that green tech is "too expensive" and that Toyota loses money on every hybrid built.
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Yikes 9:29AM (4/29/2009)
I see, you are a holier than those who choose to drive SUVs.
You must be special!
Bruno 10:17PM (4/28/2009)
ShaunneyCakes,
One doesn't have to be a big suv fan to realize that they were using 2008 numbers. Remember 2008? Gas $4.20/gallon and hybrids selling at above msrp with no incentives?
Guess what happens when gas is $2/gal? They have to give incentives to move them. Clark Howard, a radio consumer reporter says that hybrids have been backing up in inventory due to low prices.
So yes, they have reached rough profitability. But they may lose a little money on them in 2009 and until gas prices rise again (they will).
But remember, barely breaking even or making a modest profit per vehicle doesn't cut it. They'll come along eventually but they aren't quite there yet as sales volumes keep unit costs higher.
In this size of car a good 4 cylinder or diesel is still a good alternative.
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Stew 11:28PM (4/28/2009)
Come on now, EVERY car except possibly Subaru has backing up inventories, that's why GM is idling plants for the next two months.
Stew
Chris M 8:03PM (4/29/2009)
Um, sales of all cars are down. Hybrid sales declined 25%, but overall new car sales are down 40%, and some SUVs sales are down over 60%. So, the percentage of new car sales that are hybrids has actually gone up. The only car sale categories doing better than hybrids are sub-compact economy cars.
brn 11:03PM (4/28/2009)
I hover on the fence when it comes to hybrids, but I'll cry foul on the $3100 profit claim. You can bet your house that it's funny math.
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john 1:12AM (4/29/2009)
that is not true...neither manufacturer makes money on their car...just green people seeing false green and trying to sell others on their green world...wow george bush policies have moved to the left...just say it and it makes it so...
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Superfavor 2:45AM (4/29/2009)
Now, I am actually a fan of all-electric. BYD's e6 looks like a party spoiler. Tesla's Model-S fills the premium electric niche; Chevy's Volt and Fisker's Karma are over-hyped and too late.
Insight's real rivals have got to be BYD's F3DM (compact sedan) and F6DM (mid-size sedan). Once you look past the derivative styling, you find a pretty decent gasoline-hybrid for little money.
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Throwback 8:21AM (4/29/2009)
"Chevy's Volt and Fisker's Karma are over-hyped and too late. "
Both will be out before the model S, and available in places other than California.
Bill 9:36AM (4/29/2009)
No Chinese-made vehicle has yet come close to passing U.S. crash test standards.
And BYD has made many claims as to cost and capacity for its lithium batteries but has shown no proof of their claims.
Tesla has no production capacity for the Model S.
Hybrids like the Prius and new Insight will continue to dominate.
Hopefully the Volt and plug-in Prius next year.
mike 9:09AM (4/29/2009)
The two pictures above:
Everything about the 2 photos - the Prius looks better.
The back has a smaller blind spot.
The Car looks more proportioned.
The Back end looks 100x better. The back doesn't sit really high like the insight.
The rims look better.
The shoulder crease looks great!
I think that Honda did a nice job developing a cheaper version. It really looks like a midstyle change to the current Prius - while the 2010 looks like a completely upgraded one.
I'd have to pick the Prius on this. Better gas mileage. Bigger car - $1270 more. When else do people compare a economy car with a midsize from another manufacturer and justify it?
Do we compare the Corolla and the Accord? They are both 4 door.. 4cyl base engines..
If the Accord were only $1270 more AND got better performance (faster) and better gas mileage why would you ever choose a Corolla?
The Prius is FASTER, MORE FUEL EFFICIENT, AND BIGGER! I think it's a winner. I can't wait to test drive one. But I will also test drive the Insight to be 100% sure!
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Yikes 9:33AM (4/29/2009)
And of course, this $1200 "base" Prius Toyota is NOW touting doesn't exist, Toyota hasn't said when or if they will actually produce it, nor has Toyota finalized how much content they must strip out to get the price down enough to compete with the Insight.
Yikes 9:34AM (4/29/2009)
$1270 difference "base" Prius.
Mike 10:12AM (4/29/2009)
I understand that.. but they can really strip a lot out and still have the Honda beat on mileage / speed / size and match the "amenities"
Here are just a few things:
1. Drop 2 speakers from the Radio - (honda base only has 4 , prius has 6)
2. Drop a power accessory port - Prius has 2 (cell phone & Nav/mp3 player) Insight only 1
3. Get rid of the Cargo Tie Downs in the trunk (only the Prius has them)
4. Get rid of the Drivers side lighted vanity mirror Dual Illuminated Vanity Mirrors - only on the Prius.
5. Get rid of the overhead console for sunglasses.
6. Get rid of the drivers knee airbag - Only the prius has it.
7. Auto up/down on all the windows.
These are all "amenities" simple, yet very effective features that when you have them and use them they are invaluable.
The Insight lacks a lot of these little "something extras". Thus making it an "ECONOMY CAR" not a midsize family sedan with features.
The current and last generation prius was never meant to be the cheapest car, but more so a midsize alternative with better than economy car mileage.
They have succeeded. If you want a cheap economy car with no features, then why not get a Versa or something? Why even get an Insight? If you want a midsize car, with features, and the best gas mileage, then get a prius.
Again, these are just my initial thoughts from looking at photos online, and reading reviews. I will wait until I drive both to determine 100%
Yikes 10:23AM (4/29/2009)
again, as we typically see of Toyota, these "base" models never seem to exist. All the Prius I see on lots are pushing 30K.
Sorry, but I would never resort to driving an appliance like the Prius just to get a few more miles per gallon. The current Prius is probably the WORST driving experience you can have from all the new cars available. Horrid driving dynamics, numbest steering I have ever had. The erratic braking is a total turn off.
Sorry, extracting every last morsel of MPG yet be saddled with one of the worst driving cars on the planet just isn't worth all that extra cash.
Levi 10:45AM (4/29/2009)
To Mike
For about $23,000, you have approximately a base Prius. For the same money you have an Insight with Navigation, Bluetooth, ESC, Ipod connection, and real world mpg figures that are darn near right on with the Prius. For you list above, let me comment.
1. Drop 2 speakers from the Radio - both systems relatively suck
2. Drop a power accessory port - Prius has 2 (cell phone & Nav/mp3 player) Insight only 1- So you need 1 USB for your iPod and another one for???
3. Get rid of the Cargo Tie Downs in the trunk (only the Prius has them)- No reply???
4. Get rid of the Drivers side lighted vanity mirror Dual Illuminated Vanity Mirrors - only on the Prius. - No man really should be concerned with this
5. Get rid of the overhead console for sunglasses. - You can live without it
6. Get rid of the drivers knee airbag - Only the prius has it. - Actually not many cars have this period so no knock on an Insight
7. Auto up/down on all the windows- Come on, you can live without this
The Prius is not the VALUE the insight is. It is in a completely different class and I think the Accord / Corolla comparisons is correct. But, if your looking for the best MPG for the money. The Insight wins and its not a contest. If your nitpicking like the points you stated above suggest, your already Prius bias and not really giving the Insight it due credit based on numbers. You want to spend $23,000 for a loaded car or $23,000 on a bare bones car. The price difference is going to be about $5000-$8000 different and thats a lot of money.
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usbseawolf2000 11:01AM (4/29/2009)
Levi,
Even the Insight EX lacks a lot of hybrid exclusive premium features. It doesn't even come with the cover for the hatch. If you add the cost of it, the price difference is only $505.
http://sites.google.com/site/usbseawolf2000/Home/comparison-2010-prius-vs-2010-insight
The base Prius comes with Touch Tracer and Smart Key System. Those features alone worth $505. Prius' lower gas consumption can save $2k over the long run over the Insight. You are also getting a bigger, faster, safer and more refined car.