Toyota cuts prices of the latest Prius to compete with Honda Insight

Toyota announced that it will cut the prices of its latest Prius in order to compete with the less expensive Honda Insight. The base model of the third-generation Prius is priced beginning at 2.05 million Yen ($20,637), which is below the original 2.33 million Yen ($23,456) sticker price intended.

The Honda Insight has met with resounding success in terms of sales in Japan with its 1.89 million Yen ($19,027) introductory price. The new base Prius comes with an introductory price matching that of the mid-range Insight. It was announced by Toyota that it will continue selling the second generation Prius together with the new model, with a price tag of 1.89 million Yen ($19,027) which is exactly the same as that of the entry-level Insight. The price for the next generation Prius, which will hit markets this July, has not yet been confirmed, but speculations peg it at about $27,177. Although that is $4,400 more than the Honda Insight, traditionally, however, Prius has not appealed much to budget-minded customers.
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