Toyota plans to take on Honda with low-cost hybrid for 2011

Tokyo-based Toyota Motor (NYSE: TM) confirmed today that's it's developing a low-cost Yaris hybrid expected to go on sale in the U.S. and Japan by 2011.

The spinoff of the Yaris is expected to have a price tag less than than $20,000 in order to help the company retain its dominance of the hybrid market. That target puts it in direct competition with Tokyo-based Honda Motor (NYSE: HMC), which plans to launch its Insight hybrid with a cost of $19,800 in the U.S. next month.

Akihiko Otsuka, chief engineer of the third-generation Prius, confirmed the news to Japan's Nikkei newspaper on the day the company unveiled its 2010 Toyota Prius with solar panels (see Toyota plug-in hybrids coming in 2010).

"We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz [sold in Japan] and Yaris," he told the paper.

The current model of the Prius sells for about $22,000, but the 2010 model is expected to cost more. By contrast, the most expensive version of the gas-powered Yaris carries a price of $15,880.

Toyota gets its nickel-metal hydride batteries through a joint venture with Panasonic EV Energy but is looking to move that, and other, technology in-house to reduce costs. Toyota is now developing its own lithium ion batteries.

Honda is developing lithium ion battery packs with Japan's GS Yuasa but buys its nickel-metal hydride batteries from Tokyo's Sanyo Electric (OTC: SANYY) (see Mitsubishi EVs to be tested in California).

Read the article »

Cleantech developments making news in the past 24 hours

• Metabolix, ADM to open new bioplastics factory
• Rockwool nears construction on Indian insulation factory
• Two Israeli wastewater firms to locate in Michigan
• Al Gore: Super grid is critical to combating the climate crisis
• A quest for CO2 and O2 optimal management with biofuel from algae

View the last week of cleantech developments here | Subscribe to full feed