Is the Honda Insight Too Small for the U.S.?
The Honda Insight has fallen to the new and improved Toyota Prius, according to sales figures. Drivers have been going to the Prius instead of the new Insight, favoring the Toyota hybrid seven-to-one over the Honda hybrid just in the last quarter of 2009. Honda sold less than 200,000 Insights in the first year, but this number is from worldwide sales, not just the U.S. Total sales in the U.S. equal about 20,000, which is far less than the company's expected number of 90,000.
Despite the affordability of the Honda Insight compared to others in its class, the Insight just isn't selling like expected. This could be due to the fact that the interior is lacking and too small.
Honda Motor Co. feels the reason for the poor sales is the lack of space inside the Honda Insight. Koichi Kondo, executive Vice President of Honda Motor Co. has said, 'I think we compromised too much on size in pursuing fuel efficiency'. One day we want fuel efficiency, the next day it's more room in the back seat. U.S. customers are a tough crowd to please.
Fuel prices have also been blamed for the poor sales. Since fuel prices have stayed lower than 2008, many buyers aren't as 'gas conscious' when making a new car purchase. Even the Honda Fit is suffering. A new hybrid version of the Honda Fit is being developed, but many people believe the current version of the Fit is good enough. Kondo stated, 'There are plenty of people who think that the current Fit meets their needs already (with its current fuel efficiency). A hybrid version might seem expensive. Our engineers are really struggling'. A new hybrid version of the Fit may be more expensive and not sell well.