According to the Nikkei newspaper out of Japan, both Honda and Toyota are making a profit on every hybrid vehicle they sell.
According to the report, both companies make an estimated $3,100 on each hybrid vehicle. This profit margin is about the same as they make on a traditional gasoline powered car.
Despite what most people believe regarding the profitability of hybrids, Honda and Toyota have proven that you can make money on this type of product. Hybrids were once thought to be a money losing proposition for a company, but its no longer the case for Honda and Toyota at least.
Honda expects to sell 200,000 Insights in its first production year. With the profit margin listed above, Honda expects the Insight to be its fourth largest money maker for the company.
Hybrids have come a long way over the years. Most importantly, hybrids can now be profitable for companies. This will encourage other companies to produce more hybrids, as they are no longer a money losing gamble.
Source: Nikkei Newspaper Japan