In Japan, Prius Cements Status As #1 Car - Six-Month Wait, But CFC Program Extended Six Months

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In Japan, the Prius easily outsold the No. 2 hybrid, the Honda Insight, at 93,283 for the year, and ranking fifth in overall Japan sales. Coming in second for overall car sales was Honda Motor's (HMC) Fit, followed by the Toyota Vitz. Neither are hybrids but both are small and fuel efficient models.

Green models have gotten a huge lift this year in Japan from a government cash-for-clunkers program and tax breaks, aimed at boosting sales during a slowdown that has seriously hurt Japanese automakers. The Prius has been the biggest beneficiary of the policy. Hybrid sales got a perk from the cash-for-clunkers program in the U.S., but that only lasted about a month. The program in Japan is being extended by a half-year through September.

"The Prius is just the talk of the town," said Hiroyuki Naito, a Tokyo Toyota dealer, who could barely control his glee over a fresh flurry of orders after the incentives were extended. "The model appeals to a wide range of people. Some are switching from import models, while others are switching from luxury models."

Hybrid sales already make up about 10% of new vehicle sales in Japan. Green Car Congress, which researches and compiles reports on green technology, said hybrids had a 2.8% share of new vehicle sales in the U.S. last year. "The Prius is proving to be the solitary runaway winner," said Mamoru Katou, auto analyst with Tokai Tokyo Research. A model that sells 20,000 a month in Japan is rare, said Katou, adding that he expects the Prius to sell in even bigger numbers in 2010 in Japan. Pricing has been a big reason for its success, according to Katou. That value-for-the money perception is unlikely to be threatened until the arrival of Honda's hybrid Fit in Japan expected later this year, he said.

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http://www.usatoday.com/money/autos/2010-01-08-prius-tops_N.htm