I remember the gas wars when I was a kid. I once filled up my ‘60 VW bug (I bought it used) for less than $2.00. Gas was 24.9¢. That’s right, less than a quarter a gallon. Yeah, yeah. I’m old.

The point is, when there are price wars, the consumer wins.

Toyota and Honda are going to go at it with their hybrid cars. Remember those three reasons why Honda’s New Insight Will Beat Out Toyota’s New Prius? We may have been right, eh? Honda introduced its hybrid Insight last month and it has already received 18,000 orders, more than three times its monthly sales target.

Toyota is countering by preparing to lower the price of its Prius and roll out a new hybrid less than Y2 million (Insight costs Y1.89million). But their new hybrid with an engine smaller than 1.5 litre, isn’t expected out until 2011.

In the end, however, the consumer is going to win this war.

Via: AFP

The new Honda Insight is already hot in Japan. Orders are more than three times what was expected. “Overwhelming” says a Honda executive.

The car will be on sale in the States from April.

There are three reasons why the Honda Insight will beat out the Toyota Prius in the long run … maybe.

1. Honda Insight has a mass appeal – former mini-car owners, sedan-owners and minivan-owners are checking it out.
2. Honda Insight costs under $20,000, almost 20% less than a Toyota Prius.
3. Honda Insight boasts 61 miles per gallon, 33% BETTER than the Toyota Prius, and 20% BETTER than the new Prius due out this spring.

Economy is bad, gasoline prices unstable and leaning upwards, and the new Insight is not nearly as funky looking as the older one. My bet is this Honda Insight has a pretty good chance of making inroads into the market that the Prius now dominates.

Images via Autoblog

Orders for Honda Motor Co.’s environmentally friendly ultra fuel-efficient hybrid Insight hatchback have topped 10,000 units in just 10 days. The figure is double and then some the monthly sales goal set for the five-door vehicle.

The Insight base model of the Insight goes for $21,000 compared with $26,000 for the base model of Toyota Motor Corp.’s Prius hybrid hatchback.

It’s all about the price, industry analysts said.

Question – would you buy a fuel-efficient hybrid knowing it’s better for the environment even you have to drive it 10 years to get your money back out of it in savings?

Let us hear from you.

Toyota says it will launch as many as 10 new hybrid gas-electric models within the next four years IF the economic downturn doesn’t prevent them and IF there is renewed consumer demand.

When gas was $4+ gallon (US) consumers didn’t mind paying an extra $3-5,000. They seem to mind now that gas is half that price.

Toyota has a fleet of 500 plug-in Priuses that it will unleash next year. A new redesigned Prius and Lexus luxury sedan will be unveiled in Detroit.

Toyota will also unveil a concept car – a battery-electric vehicle for city use that the company hopes to put into production by 2012. Sales were down by half in December.

How soon we forget! Save gas when it is expensive. Gulp it down when it is not. Now is the time to save on gas, BEFORE the next oil crisis comes.

Edmunds.com, an online car research service, estimates that, as a result of the drop in gas prices, a Prius owner must now wait more than eight years to recoup the extra cost of the vehicle in fuel savings, compared with 3.5 years when the gas price climbed above $4 a gallon last spring.

Meanwhile, Honda’s “Prius-Fighter” the Insight Hybrid is coming, GM’s Volt is on its way – sometime in late 2010, while Cadillac has the Converj which is expected in 2012. I wonder if that will turn out to be true, or not …

Source: Nikkei (sub req)