The auto price war is escalating with American Honda Motor Co. offering its biggest lease deal ever, a move analysts said was designed to offset aggressive sales incentives by rival Toyota Motor Corp.
What's unusual about this price war is that it is being fought the hardest by Japanese automakers, which historically have resisted using large incentives to sell vehicles.
Toyota fired the first volley when it announced a variety of discount financing and special lease deals this month in a move to regain market share in the U.S. after a series of embarrassing recalls.
"There is an irony in the fact that you have a price war launched by Toyota, which has never been reactionary before," said James Bell, an analyst with auto information company Kelley Blue Book. "They are playing the game other brands previously had to play to keep up with Toyota."
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