Camry hybrid versus the Prius

Could the Camry hybrid challenge the Prius?

The Toyota Camry hybrid is months away from going on sale and the price still hasn't been officially released. Yet, dealers are already taking orders on Toyota's newest hybrid.

Now, this isn't that unusual in the world of hybrid cars. Preorders were also common on the Highlander hybrid and the Lexus RX400h before they were officially launched. Yet, the sales hype behind both the Highlander and the RX400h hybrids eventually waned a bit, especially compared to the Prius hybrid.

So, how will the Camry hybrid compare?

The Toyota Camry already owns a very loyal following. Will this core customer group drive Camry hybrid sales? Ultimately, that will probably depend on pricing, but current owners offer a huge, potential customer base.

Additionally, many potential hybrid buyers have complained that the Prius is just too small, otherwise they would have purchased the vehicle. Many of these potential customers have expressed strong interest in the Camry hybrid. Will this segment outnumber current Camry owners seeking an upgrade?

It's also possible that those putting down-payments on the first hybrid Camrys are simply hoping to lock in tax credits. As I blogged yesterday, Toyota hybrid tax credits will expire before the end of the year, so placing a down payment as quickly as possible isn't a bad idea.

One can be sure; however, that the entire auto industry will be nervously watching the launch of the Camry hybrid. If the hybrid Camry is as popular as the Prius hybrid, the hybrid revolution will reach critical mass much sooner than anyone is expecting. If this happens, competitors beware, for only Honda is positioned to face this challenge.

Even Toyota might not be ready for such acceptance, so I wouldn't be surprised if Toyota prices the Camry hybrid fairly high simply so that it can adequately supply demand - at least in the short term. Until the hybrid supply chain is a little more robust, Toyota just might not have much choice, although I'd love be wrong.