
OYAMA, Japan — Toyota’s chief engineer, Akihiko Otsuka, chose a curvy test-drive course near Mount Fuji to show off the smooth handling of the prototype of the remodeled Prius hybrid, set to reach showrooms in May.
He proudly told reporters about its outstanding mileage — 50 miles per gallon — roof solar panel and collision safety features, as well as how fun it was to drive.
During the recent event at Fuji Speedway, Otsuka was intent on stressing how the Prius performed better than Honda’s hot-selling Insight hybrid. But he was surprised at the upstart’s price — $2,000 to $4,000 less than the current Prius model.
“It was lower than anything I had expected,” he said with a laugh. “Honda has done a great job.”
Welcome to the new price war in hybrid vehicles. Toyota’s Prius, the long-reigning hybrid king, faces its toughest competition yet in the Insight, whose sales have already topped 21,000 in just a month and a half in Japan — more than triple Honda Motor Co.’s target. Yuri Kageyama, The Associated Press



