"Toyota carries the image of being a leader in hybrids and the recent problems with the Volt's batteries give consumers an extra reason to choose the plug-in Prius over the Volt," said Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. "Toyota's new plug-in Prius will definitely have a negative impact on GM's sales of the Volt."
Toyota, poised to lose its crown as the world's biggest carmaker to Detroit-based GM this year, said the PHV goes on sale in January in Japan and March in the U.S., where it will be about 20 percent cheaper than the Volt.
GM believes the Volt is a different kind of car than the Prius plug-in and will appeal to different buyers, said company spokesman Rob Peterson. The Volt can go farther in electric drive than the Prius and offer much better efficiency for drivers with a short commute, he said. The Volt's electric drive system also provides the kind of soft, quiet ride befitting many luxury cars, he said.
Plug-in Push
"We think the Volt is a better proposition," Peterson said. "The Volt is much more refined than a Prius."
The auto industry as a whole is making a push in to the plug-in market. Nissan Motor Co. plans to introduce a plug-in hybrid by 2015 to complement its gas-free electric Leaf compact. The automaker has sold about 20,000 Leaf compacts since they went on sale on December last year. Honda Motor Co. has said it will embrace the plug-in variation of hybrid engines by as early as next year.
Mitsubishi Motors Corp., which makes the i-MiEV electric car, has said it will introduce a plug-in in the second half of next year. Audi AG expects to introduce such vehicles in 2014 and South Korea's Hyundai Motor Co. has said it also plans to roll out its own plug-in hybrid.
Toyota, however, may have the edge. "No other carmakers have a car like" the PHV, said Chris Richter, a Tokyo-based analyst at CLSA Asia-Pacific Markets. "Toyota's plug-in has a much better efficiency and range than the Volt, which is much more expensive."