Toyota Yaris Hybrid to Take on Honda Insight

As we reported earlier this month, Toyota is working on a low-priced hybrid that would compete with the inexpensive Honda Insight hybrid but no specific details have been released until today. Akihiko Otsuka, chief engineer of the redesigned, third-generation Toyota Prius, said the upcoming cheap hybrid will be based on Toyota Yaris and will arrive around 2011, according to a report by the Japanese publication Nikkei.

"We are developing a low-priced hybrid vehicle like Honda's Insight," Otsuka said. "We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz and Yaris," he said without providing details on the official launch date.

Honda Insight pricing starts at approximately $20,000 while the last-generation Prius costs around $22,000. However, the upcoming hybrid will be cheaper than a Prius, Otsuka said

A thing worth mentioning is that future hybrid models may rely on lithium ion batteries, different from the Prius which incorporates a nickel-metal hydride battery supplied by Panasonic EV Energy. Moreover, Toyota said it is currently working on building its own lithium ion batteries, a move that may also contribute to the overall price reduction of the next hybrid. Honda's Insight uses a nickel-metal hydride battery provided by Sanyo.

Toyota may also prepare a hybrid version of Auris, a compact 3- and 5-door hatchback sold in multiple regions of the world. An interesting fact is that the new Prius shares more parts with the Auris than with its predecessor, according to Autonews.

"The Auris platform was designed so it could also carry a hybrid system," Otsuka said. "By making it flexible, it can accommodate future overseas production and reduce costs."