An Unprecedented 180,000 Backorders in Japanese Automotive History

On June 19, Toyota Motor Corporation released a press statement announcing that as of June 17, just one month after its May 18 launch, the Prius had received approximately 180,000 orders. With a monthly sales target of 10,000 units, this figure represents an eighteenfold increase, an unprecedented backlog in Japanese automotive history, even so soon after its release.

Given the current economic climate, described as a once-in-a-century recession that has severely impacted the automotive industry, this phenomenon could be considered a social event. While the Prius's inherent potential and appeal are undeniable factors, the government's "eco-tax breaks" and "new car purchase subsidies" have certainly contributed. However, even Toyota might not have anticipated such a response, especially with other hybrid models in its lineup and rivals like the Honda Insight on the market.

Regardless, it is no exaggeration to say that the Prius is currently the most captivating car model available in Japan. Openers has acquired this highly anticipated vehicle as our second long-term test car.

Addressing environmental concerns is a pressing issue for the automotive industry today, and hybrid cars undoubtedly offer a viable solution, considering infrastructure and other conditions. The Toyota Prius, equipped with the most advanced hybrid system currently available, allows us to explore its potential through daily use.

The Most Popular is the Base "L" Grade

The Prius is available in several grades: the base "L," "S," and "G." These can be further specified with the "Touring Selection," which includes 17-inch tires and specially tuned suspension, or the "Leather Package," featuring leather seats, resulting in a total of six distinct configurations.

The price range spans from ¥2.05 million for the base "L" grade to ¥3.27 million for the top-tier "G Touring Selection Leather Package," a difference of ¥1.22 million. This broad range likely reflects Toyota's strategy to compete with the formidable Honda Insight, which debuted under ¥2 million, while also catering to customers seeking higher quality in hybrid vehicles, a segment Toyota cultivated with the second-generation model.

According to Kazuhiko Kojima at Tokyo Toyota Edogawa, the most popular grade is the "L," perhaps reflecting the current economic climate due to its affordability. The "S Touring Selection" comes in second. For Openers, we opted for the "G Touring Selection." Our reasoning was twofold: firstly, the "Touring Selection" package, which focuses on driving performance as well as fuel efficiency, is only available for the "S" and "G" grades. Secondly, the "G" grade includes a smart entry system accessible from all four doors, a convenient feature for our editorial team, which frequently has multiple occupants.

Tax Savings of ¥204,571

We were able to take full advantage of the currently popular tax incentives and new car purchase subsidy program for this acquisition. Let's review these programs.

Regarding tax incentives, hybrid cars that meet the "75% reduction level of 2005 emission standards" and achieve "25% above 2010 fuel economy standards" are eligible for a 100% exemption on weight tax and acquisition tax, and a 50% reduction on automobile tax when purchased new.

For engine vehicles that meet the aforementioned emission standards and achieve "25% above 2010 fuel economy standards," weight tax and acquisition tax are reduced by 75%, and automobile tax by 50%. Furthermore, vehicles certified with "75% reduction level of 2005 emission standards" and achieving "20% or 15% above 2010 fuel economy standards" receive a 50% reduction on both weight tax and acquisition tax, and a 25% reduction on automobile tax.

For our Prius "G Touring Selection" (with optional HDD navigation system, G-BOOK mX Pro DCM, and ETC unit), the tax benefits amounted to ¥147,871 in acquisition tax and ¥56,700 in weight tax, totaling ¥204,571 in tax reductions. Needless to say,Lexustax savings are even greater for higher-priced vehicles such as the LS600h and Crown Hybrid.

The validity period for these tax incentives is until April 30, 2012, for weight tax, March 31, 2012, for acquisition tax, and March 31, 2010, for automobile tax.

Minus ¥300,000 with Tax Incentives and Subsidies

The new car purchase subsidy program offers two options. A ¥250,000 subsidy is provided when scrapping a vehicle over 13 years old and purchasing a new car that meets "2010 fuel economy standards." Alternatively, a ¥100,000 subsidy is available for purchasing a new car that meets "75% reduction of 2005 emission standards" and "15% or more above 2010 fuel economy standards," even without scrapping an old vehicle. Our Prius acquisition qualifies for the latter, meaning the combined tax incentives and subsidy effectively reduced the price by over ¥300,000. This is a significant incentive for many consumers. In fact, according to Mr. Kojima, the Prius now accounts for 65% of sales at Tokyo Toyota Edogawa.

The subsidy program is set to end in March of next year, or sooner if the ¥370 billion budget is depleted. Therefore, while ordering a Prius now might mean delivery next year, it remains uncertain whether the subsidy will still be available.

In any case, the Toyota Prius has achieved unprecedented popularity in Japan with 180,000 backorders. In our long-term report, we will meticulously document its appeal, including its fuel efficiency, through daily use.

Toyota Prius G Touring: Initial Cost Details

Vehicle Base Price	¥2.7 million
Manufacturer Options
White Pearl Crystal Shine	¥31,500
G-BOOK MX PRO DCM	¥54,600
ETC	¥10,500
HDD Navigation	¥308,000
Accessories
QMI Glass Sealant + Fine Set	¥73,000
QMI Glass Sealant for 4 Aluminum Wheels	¥8,400
Floor Mats	¥33,600
Digital TV for Navigation	¥84,000
VICS Beacon Unit for Navigation	¥24,150
Navigation-Linked ETC Kit	¥4,935
Automobile Tax	¥32,900
Acquisition Tax	¥0
Weight Tax	¥0
Recycling Law Fees	¥13,570
Total	¥3,410,755

TOYOTA PRIUS G Touring

Body	Length 4460 x Width 1745 x Height 1490 mm; Wheelbase 2700 mm
Curb Weight	1380 kg
Engine	1.8L Inline 4-cylinder + Electric Motor
Max Output	Engine: 73 kW [99 PS]/5200 rpm; Motor: 60 kW [82 PS]
Max Torque	Engine: 142 Nm [14.5 kgm]/4000 rpm; Motor: 207 Nm [21.1 kgm]
Drive System	FF
Transmission	Electronically Controlled Continuously Variable Transmission
Price	¥2.7 million