Speculating
on Toyota's new hybrid vehicle-only brand
Tuesday,
June 27, 2007
Toyota's
next hybrid-only vehicle?
---Also--> How
about a hybrid-only crossover?
So, by 2009 Toyota plans to begin selling another
hybrid-only brand. Will it be completely unique? Will it
be a Prius
derivative, such as a larger Prius or a smaller city Prius,
as Toyota has previously discussed? Maybe it will be
something even far more interesting, such as the FT-HS
hybrid concept?
O.K., Toyota's new hybrid will not be the FT-HS, as Toyota
has already stated that it would develop this concept
vehicle as both a hybrid and a conventional vehicle.
Still, whatever vehicle it is, it proves that Toyota is
not just serious about hybrid
cars, but dead serious about selling 1,000,000 hybrids
per year starting around 2010. So, what is this new hybrid
and how does it fit in with Toyota's hybrid plans?
Hybrid-only brands are
better?
Early, unverified reports, indicate the new hybrid-only
brand will be larger than the current Prius, more like the
size of the Camry hybrid. Business
Week, for example, reported on a story the Nikkei ran
claiming "the new hybrid will offer better riding
quality due to its larger size and engine displacement of
2 to 3 liters. The Prius uses a 1.5-liter engine."
Still, how important is another hybrid-only brand towards
achieving a goal of 1,000,000 hybrids per year? Why not
just hurry a Sienna hybrid or a Matrix hybrid, etc.? Even
more interesting, why produce another hybrid-only brand
that might rival the Camry
hybrid?
First, there is no reason Toyota won't launch both a
Sienna hybrid and a new hybrid-only vehicle around the
same time.
Second, many in the automotive world have claimed that the
success of the Prius, compared to many other hybrid
models, is due to its uniqueness. There is no such thing
as a non-hybrid Prius, and many argue this uniqueness
allows Prius consumers to largely define their identity by
their car - to distinguish themselves.
Essentially, the Prius shouts global warming fighter or
foreign oil dependency fighter - core principles for many
Prius consumers.
Certainly, other hybrids might achieve the same fuel
efficient results, but they don't allow consumers to tell
the world what they think, believe, etc.
What if all cars are hybrids?
While there is no doubt some truth to this argument, the
growing success of the Camry hybrid seems to demonstrate
this might not always be the case. As economies of scale
drive down the cost of hybrid technology, it might soon
become obviously more cost-effective to buy a hybrid
Camry, rather than a conventional Camry, especially if gas
prices continue their current trend.
The same could be said of the Sienna or the Tundra, for
example.
Still, in the short term, there is no doubt that a unique
hybrid will drive serious buzz, again, to Toyota. The more
this hybrid-only brand can significantly differentiate
itself from the Prius, so that it doesn't just seem like a
smaller or larger Prius, the greater its potential.
Moreover, even though this new hybrid might steal some
Camry hybrid sales, it just might fit an untapped,
important niche.
A larger, unique hybrid might accommodate a family of 5,
maybe even a family of six, better than both the Prius and
the hybrid Camry. In addition, for global warming focused
consumers with larger families, a bigger, unique hybrid
might also offer the same environmental street cred as the
Prius.
Of course, a smaller city Prius, such as a Scion hybrid,
with 60 mpg real world fuel economy and a sticker price
under $18,000 - might also offer serious sales potential,
especially outside the U.S.. Then again, such a small
hybrid would probably offer razor thin profit margins.
Ultimately, however, the hybrid revolution is gaining
ground, and that's great news for hybrid fans. It should
also serve notice to other automakers. Hybrid-only brands
are an important part of future success. Deal with it.
posted
by Dahcredyns at
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