• Jul 22, 2010
Toyota and Honda have experienced a surge in demand for hybrid vehicles in their home market over the past two years thanks to generous government incentives for "eco cars." The Toyota Prius has been the top-selling vehicle for more than a year and even the oft-derided Honda Insight has sold beyond expectations. Unfortunately for the automakers involved, those incentives end in October and with the expected drop in sales, Toyota is reportedly planning to cut domestic production.

The Japanese Kyodo news agency reports that Japan's largest automaker will cut production from its current 14,000 vehicles a day to fewer than 12,000 in the final quarter of the year. The automaker does expect sales to recover later in the year and has maintained its production target for the full fiscal year.

[Source: Reuters]


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  • 21 Comments
      • 4 Years Ago
      Do Toyota cars still qualify for federal tax credits? I think that ran out long ago, at least for the Prius.
        • 4 Years Ago
        Wrong Answer.
        Go back and bath your brain in the insane ramblings of Glen Beck for 10 days, and give us the "Right" answer.

        • 4 Years Ago
        Yes they ran out years ago. This is Japan they're talking about. The US subsidies for hybrids were pittens and didn't last very long. The plug in hybrid subsidy is quite substantial however at $7,500.
      • 4 Years Ago
      Is it not great how government intervention can distort markets? Would they be lowering the production if they thought the cars would be sold? But we are missing what percentage of the car cost is actually government subsidy so we can better appreciate the increase in price without said subsidy.
        • 4 Years Ago
        Uh no,
        The US Train network was build with massive Federal Subsidies.
        And the Highway system.
        And the Electrical system.

        It's only in Glen Beck's mind does the no-subsidy theory actually work.

        Of course, Today, Exxon, with the slightest spark of "Innovation" could spend 225 Billion Dollars, over 10 years, and move the US into Wind or Solar Dominance any time it liked. But, it's easier to sit on your fat *** or play golf then actually "Innovate".
        • 4 Years Ago
        I think this shows just how far hybrids and electric cars have to come before being accepted as legitimate competition. If you get away from the blinding optimism found on Autoblog Green the picture for hybrid demand looks pretty bleak without subsidies.
        • 4 Years Ago
        Yup. Imagine how much cheaper hybrids could be now that there is a real market demand for them, had the price not been artificially subsidized away from its real market price.
        • 4 Years Ago
        akboss, with that logic, we would have never developed anything without government help. But if you look before the time of massive Federal budgets, that's exactly what happened.

        What happens is that private capital gets directed where it needs to go. There's plenty of private capital directed towards alternative energy, batteries, and evs as well as hybrids. Why? Is it because it is "green?" The "eternal optimists" on AutoblogGreen may believe so, but in reality, it's because there is possibly money to be made. That's how the world works, and there's really nothing wrong with it.

        If there's real promise in hybrids, rich people and venture capital companies will invest in it. Period.
      • 4 Years Ago
      I can only imagine what would happen to the hybrid and electric car market in the U.S. if the federal government stopped giving green car buyers $7,500 tax credits.
        • 4 Years Ago
        And the first 4,400 Volt buyers will also be receiving free 240-volt charging stations. They're valued at $2K.
        • 4 Years Ago
        Um, the Govt stopped giving credits to Prius buyers long ago.
        • 4 Years Ago
        Tough-titty then if you happen to be the 4,401st.
        • 4 Years Ago
        Exactly. I don't think most people will buy hybrids without the tax credits.
      • 4 Years Ago
      14k/day? I assume that means they don't go 365 days/year. Bc that means they're making over 5 million hybrids annually and that seems high.
        • 4 Years Ago
        I think that 14,000 a day is total production, not just hybrid cars.
      • 4 Years Ago
      I thought Toyota was building Priuses to save the planet, and it had nothing to to with government subsidies?
        • 4 Years Ago
        Toyota always built them to make money; it's their typical buyer who believes they're somehow being an Earth saint by driving a Prius.
        • 4 Years Ago
        @Chibi Chaingun "Then you be ignorant."

        You got that covered already for us.

        • 4 Years Ago
        Then you be ignorant.
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