Although Honda has yet to officially price its Insight hybrid for the U.S. market, the Japanese automaker announced on Monday that it plans to sell the fuel efficient four-door for under $20,000. Additionally, Honda said it would consider North American production of the Insight if sales consistently topped 100,000 annual sales.
However, neither task will be easy to achieve. The Insight will be produced in Japan, which will erode Honda’s profits. The rising value of the yen has driven up the Insight’s Japanese sticker price from about $19,000 to about $23,000. Honda is still optimistic that it can sell the Insight in the U.S. for under $20,000, undercutting the Toyota Prius by about $2,000.
But with relatively low gas prices and a collapsing new car market, Honda could have a tough time meeting its internal sales goal of 100,000 U.S. Insight sales per year. The Insight’s closest competitor, the Toyota Prius , saw its sales slide by nearly 29 percent in January. However, if the market does rally to support 100,000 annual sales, Honda could shift Insight production to a plant in North America, according to Automotive News.
The Insight hits the Japanese market tomorrow, but U.S. buyers will have to wait until April to take delivery of Honda’s newest hybrid.
