Is the Prius Too Mighty to Take Down?

The new Honda Insight hybrid is supposed to be a game-changer because it’s priced lower than a comparable Toyota Prius (right around $20K for the Insight versus $22K for the Prius). However, as Reuters (via Autoblog) is reporting, the Insight may not hit its debut-year sales numbers.

Obviously, in a cataclysmically down new car market, no one is hitting the targets. But given that the Insight’s main competitive advantage right now is price, it could be a problem because it hasn’t yet had the time to build up counter-Prius mindshare. When people think hybrid, they still think Prius. That’s the main thing the Insight needs to overcome, initially.

The Insight is selling well in Japan, and it should sell well in North America when sales pick up. The issue is really one of pent-up demand. Gas prices are creeping up, which should help the hybrid market overall (it collapsed after gas prices descended from their 2008 highs). Customers who’ve been on the fence about a new car may be ready to buy over the next 6-12 months, and there’s a reasonable chance that they’ll be looking more closely at a hybrid.

So the question becomes: If they aren’t Honda loyalists, will they take a chance on the Insight or simply vote for the gold standard, the Prius? A betting man would bet on the Prius. Which makes you wonder if Honda came out of the box with its lowest possible prices, or whether there’s some room to trim or offer incentives, should later sales not meet expectations.