Honda Plans Two Cheaper Hybrids to Tackle Prius

Remember the old hybrid battle between Insight and Prius, after which Toyota confirmed its plans to design a cheaper hybrid to compete with Honda's very own product? Well, at that time, Honda said it has absolutely no intention to cut the price of the Insight or to design new hybrids, as its current model is powerful enough to dominate the hybrid sector. Well, it appears that Prius is a bit too powerful for Honda, the Japanese manufacturer now considering developing two new hybrid priced lower than its top-notch model.

Citing automotive analysts of IHS Global Insight, edmunds.com writes that two new hybrids would also help Honda perform better in this side of the market which is expected to get crowded in the next few years, as more automaker become interested in green models.

But the way Honda Insight sells in some regions of the world might be actually the main reason for such a decision. It appears that the Insight is far from being an attractive model in the United States where Honda expects to get 30 percent less deliveries than it initially estimated. In figures, Honda planned to sell a total of 90,000 units by March, but the sales goal has been narrowed down to 60,000 vehicles.

On the other hand, the Insight sold pretty well in Japan ever since it was officially launched. And this despite the collapsing global markets, which continuously put the pressure on the shoulders of most manufacturers.

Nevertheless, the Insight is facing a strong competition from Toyota's Prius, despite being cheaper than it. Whether the company will indeed launch two new hybrids or continue to focus solely on the Insight, we'll surely find out in the upcoming weeks.