Toyota Reportedly Cutting the Price of the Prius to Compete with the Insight in Japan...US Next?

Toyota is reportedly cutting the price of the new Prius in Japan to be more competitive with its newest competitor the Honda Insight.

According to reports, Toyota has told its dealerships that Prius would be set at 2.05 million yen, which translates to about $20,750 U.S. In the U.S. the Honda Insight starts at $20,450, but the Prius has more room and better fuel economy, but a fully-loaded Prius goes for over $30K. Additionally Toyota is going to keep selling the current generation Prius alongside the new generation in Japan. The outgoing Prius starts even lower at 1.89 million yen ($19,130 US).

U.S. pricing for the Prius has yet to be announced, but if Toyota lowers the price here as well the hybrid wars could get even more crazy.