Toyota Hybrids Go From Strength to Strength as World No. 1: Cars

Toyota Prius PHV debuts as a plug-in hybrid EV, touting high efficiency, competitive electric range, and lower price than Chevrolet Volt, amid battery safety scrutiny and rising consumer demand for greener mobility.

Toyota Motor Corp.'s new plug-in Prius threatens to cast a shadow over competitors' hybrids.

A successful debut of the Prius PHV, which Toyota will begin selling in 2012, may help Toyota secure its place as the industry leader in gas-and-electric vehicles and undermine General Motors Co.'s prospects with its Chevrolet Volt. Though the Volt, introduced a year ago, was the first plug-in hybrid on the market after GM's Volt launch in 2010, its sales are trailing the company's target. The model has also been beset by a government investigation into battery fires after collision tests.

"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 the new hybrid 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 and drew praise at an auto show celebrating the Volt and Prius earlier in the season, 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 as electric and hybrid hopes rise across major brands today. 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 as EVs finally shift into drive in mainstream showrooms today. 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 as California jump-starts the plug-in race with incentives and mandates today. 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 as plug-in concepts roll out across the industry today. "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."

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