P&A Providers & Administrators
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.

Ad Loading...


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.

Ad Loading...


"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

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →