The race to be the first auto manufacturer to develop an affordable hybrid vehicle that’s accepted by the public-at-large just got more exciting. Recently, Toyota announced that it would bring six new hybrid models to market by 2012. It’s expected that two of these models will be sold under the Lexus brand and four as Toyotas. Three of these cars will be all new models while the other three will be based on gasoline vehicles. Toyota has not released the specifics of the new vehicles as of yet.

  The announcement by Toyota raises the bar for the other auto manufacturers. GM has commanded the spotlight since President Obama brought attention to the “plug-in” electric car in 2009. Backed by government bail-out money, the Department of Energy predicted GM would sell over 120,000 units of the Volt each year from 2012 onward. As of November 2011, GM had only sold 6,142 units of the Volt which includes purchases by the government for fleet vehicles. It’s a long way to reach the presidential goal of having 1 million hybrid vehicles on US roads by 2015.

  Why the dismal sales? While the majority of Americans want to be socially and environmentally responsible, the reality of the situation boils down to a simple case of economics. The average cost of the Chevy Volt is between $39 - $41,000. That’s the same price as a 2012 BMW 335i. Chevrolet must make electric vehicles more affordable before they are accepted by the average consumer.

  Toyota has been working with hybrid vehicles since 1997, when they introduced the Prius. Innovations and technological advances over the years has made the Prius a leader in the hybrid market with an average sticker price of approximately $21,000. The big news for 2012 is Toyota plans to offer a “plug-in” version of the current Prius; similar to the technology of the Volt. This model is expected to sell for just $3,000-5,000 more than the 2011 version of Prius making the price tag within reach of the general public. This is nearly $15,000 less than the Chevy Volt and should be eligible for the same tax credits.

  American auto manufactures will have to design and develop a range of mid-class to luxury style hybrid vehicles to compete with Toyota’s move. The price of the vehicles will have to be affordable and equivalent to the non-hybrid counterparts before they are accepted and purchased by the public.