agent Entrepreneur logo
MenuMENU
SearchSEARCH

Toyota Pulls Honda into a Price War

March 25, 2010
2 min to read


Honda Motor Co. has been one of the most disciplined automakers when it comes to sales practices, steering clear of splashy deals and incentives that can erode brands and profits, The Detroit News reported. But Honda is being pulled into a price war now by its archrival Toyota Motor Corp. The two Japanese automakers are fiercely competitive, tending to fight over the same customers. After Toyota raised incentives recently to counter bad publicity over big recalls, analysts said Honda was bound to respond. Honda's discounts are still below the industry average of around $2,700 per vehicle, but in the first two months of 2010, they rose nearly 30 percent to $1,641, according to Autodata Corp. Forecasting firm TrueCar predicts Honda's incentives will reach $1,929 this month, up 8.3 percent from last March. It estimates the industry average at around $2,800, and Toyota's incentives at $2,318 per vehicle. In comparison with its rivals, Honda seems restrained. But its incentives are high for the company, which normally shuns sales tactics that erode the residual value of vehicles and brands. It's now offering deals, such as no-money-down lease plans with no deposit required on models such as its flagship Accord sedan. "This Honda program snuck in very quietly," said James Bell, analyst at used car pricing specialist Kelley Blue Book. "Their huge new lease program is proof that Toyota's recent flood of incentives might just be impacting Honda as well." Because of Toyota's size, its actions are exerting pressure on the entire industry. It's hurting Detroit's automakers, which have been struggling to wean themselves off incentives for years.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →