Toyota to launch a cut-price Prius

'Baby' hybrid plus a seven-seater due next year
discount new cars Get the best price on a new Toyota The price of hybrid technology could be within the reach of more Australians than ever with Toyota planning to introduce a ‘baby’ Prius by the middle of next year.

The all-new model, code-named Prius C, is expected to undercut the $29,990 Honda Insight hybrid, currently the cheapest hybrid car on sale in Australia.

The Prius C is similar in size to the company’s Yaris small car but shares much if its hybrid technology with the regular Prius, the world’s biggest selling hybrid vehicle with more than 3 million on the road.

The Prius C concept, first shown at the Detroit motor show in January, will be on display alongside the Prius Plus seven-seater at July’s Australian International Motor Show in Melbourne to gauge public reaction.

“We are bringing [the Prius C] to the Australian motor show to test its appeal among buyers who we expect will come from a different group to those attracted to the current Prius,” Toyota's senior executive director sales and marketing David Buttner said in a company statement.

“They are compact-car buyers, including young singles and couples, who want a mainstream city car that provides outstanding fuel economy while being fun to drive.”

“Later this year, we expect to be in a position to make further announcements about bringing an extended Prius family to local showrooms,” he said.

However, the Carsales Network understands that the decision to introduce the new hybrid models in Australia is a formality, with the Prius C likely to arrive in showrooms by June 2012 and the Prius seven seater due before the end of 2012.

The seven-seater Prius is likely to be priced at a premium -- in excess of $45,000. This approximates the cost of Toyota’s popular but now discontinued Avensis compact peoplemover.

Toyota has been making hybrid cars since 1997 (and selling them in Australia since 2001) but struggled to make the petrol-electric technology more affordable until about 12 months ago.

Following a $35 million grant from the Federal Government, Toyota Australia introduced the locally-made hybrid Camry last year with a starting price of $36,990, and two months ago it cut the starting price of the Prius from $39,990 to $34,990.

About a quarter of all Camrys sold in Australia are the hybrid model, but this has had a direct impact on Prius sales, which are down by 64 per cent in the first four months of this year (639 to 225 sales).

Toyota has consistently stated that it plans to introduce a hybrid version of every model in its passenger-car line-up by 2020. It expects to introduce five new hybrids in the next three years.

These include the ‘baby’ and ‘family’ Prius models, as well a hybrid verison of the new Camry due early 2012.

Toyota has not disclosed the two remaining models, but there are hybrid versions of the Corolla hatch in Europe and Kluger SUV in North America.

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