Toyota rolls out 3G Prius

Japanese carmaker Toyota Motor Corp. launched on May 18 the third-generation Prius hybrid car, which it expects will account for one out of five vehicles it produces domestically in the current fiscal year. The new Prius can run for 38 kilometers on a liter of gasoline, which the company said is the best fuel efficiency record in the world. Although profit margins are thinner than with gasoline-powered cars, the Prius is no longer just a promotional tool, it can boost the firm’s earnings. While it is priced at ¥2.05 million (US$21,292.26), a tax break implemented by the Japanese government for green vehicles will reduce the cost to the buyer by some ¥160,000 (US$1,661.83) to ¥220,000 (US$2,285.02). Toyota is targeting domestic sales of 10,000 units a month, but has already received orders for more than 80,000. The Prius is to be sold in 80 countries and regions, roughly double the previous version. In May and afterward, the Prius and Insight, as the most popular, are expected to go head-to-head in the race to become the best-selling model in the new-car market. (May 19, 2009)