Why is Honda Insight not selling?

The Insight isn’t selling well because it competes in a crowded hybrids segment without a clear edge, while buyers overwhelmingly favor crossovers and EV-oriented models. In recent years, Honda has signaled a shift in its electrified lineup away from compact hybrids toward crossovers and the Civic Hybrid, reducing emphasis on the Insight.

To understand the situation in more detail, it helps to examine market dynamics, product positioning, and Honda’s broader strategic moves. The Insight was introduced as an efficient, affordable hybrid, but it now faces a landscape where consumer preferences are trending toward larger, more versatile vehicles and plug-in options, making it harder for a compact hybrid to stand out. The following analysis outlines the primary factors shaping its sales performance and what might change in the near term.

Key factors behind the sales performance

Analysts point to several consistent trends that have limited the Insight's appeal. The following factors are the most frequently cited:

• Market overlap and positioning: The Insight sits between the Civic hybrid and the more spacious CR‑V Hybrid, with little differentiation in price or features.


• Shift to crossovers: Consumers are prioritizing SUVs and crossovers, reducing demand for compact hatchbacks with hybrid powertrains.


• Practicalities and value: The Insight offers strong fuel economy but less cargo space and fewer features compared with rivals at similar price points, reducing perceived value.


• Marketing and dealer footprint: Honda's marketing push for the Insight has been limited relative to their best-selling hybrids, and dealer allocations have not matched demand for other models.


• Competition from other hybrids and EVs: Toyota Prius, Hyundai Ioniq, and other hybrids and plug‑in options have drawn customers away from the Insight.

Taken together, these dynamics help explain why sales have lagged despite efficient performance. Honda’s product strategy now leans toward electrified crossovers and the Civic Hybrid, rather than maintaining a dedicated compact hybrid in a shrinking niche.

Industry context and Honda's strategic shift

Shifting consumer preferences toward crossovers and electrification

Across the industry, buyers have shown a strong preference for larger, more versatile vehicles with available all-wheel drive and better interior practicality. This has favored hybrids and EVs in SUVs and crossovers over compact hatchbacks like the Insight, limiting its footprint in many markets.

Honda's product roadmap and expectations

As part of a broader electrification push, Honda has prioritized electrified SUVs and the Civic Hybrid, aligning its lineup with consumer demand and regulatory landscapes. That shift has impacted the prominence of the Insight and shaped how the brand allocates resources, incentives, and marketing efforts.

What to watch going forward

Looking toward late 2025 and beyond, the Insight’s fate will depend on whether Honda refreshes the model, adjusts pricing or incentives, or folds its technology into the broader Civic platform. Industry observers will watch whether Honda retools its compact hybrid strategy or continues to tilt toward crossovers and EV options.

Summary

In summary, the Honda Insight’s weak sales reflect a combination of a crowded hybrid market, limited differentiation from the Civic, and a broader consumer shift toward crossovers and electrified vehicles. Unless Honda retools the model with a sharper value proposition or realigns incentives and positioning, the Insight is unlikely to regain momentum in today’s market.

Why is Honda discontinuing The Insight?

The Honda Insight was discontinued due to a strategic shift to focus on hybrid versions of its core models, like the Civic and CR-V, and changing customer preferences. By discontinuing the standalone Insight, Honda could streamline its hybrid lineup and increase production volume for its more popular and mainstream hybrid offerings. 
Here are the key reasons for the discontinuation:

• Focus on core models: Honda decided to concentrate on hybrid versions of its most popular models, such as the Civic and CR-V, rather than a dedicated hybrid model. The Insight was replaced by a new Civic Hybrid. 
• Streamlined hybrid lineup: The move was part of a larger strategy to make hybrid technology more accessible and to simplify the brand's product offerings. 
• Changing customer preferences: Customer preferences were shifting towards more fuel-efficient SUVs and away from a dedicated hybrid sedan like the Insight. 
• Low sales relative to other models: The Insight sold in much smaller numbers compared to models like the Civic, making it less economically viable to continue producing as a standalone model. 
• Opportunity to increase hybrid volume: By making the Civic and Accord hybrid, Honda expects these models to represent a much larger portion of their sales mix, helping them meet their electrification goals. 

Which year Honda Insight to avoid?

You should be wary of the 2010-2014 second-generation Honda Insight, as these models have been noted for issues like poor fuel economy, a lack of stability control on early models, and engine problems in the 2012-2014 years. The 2010 model year had significant recalls and electrical issues. 
Years to avoid

• 2010-2014: This second-generation model has been cited for several issues:
  • 2010: Recalled 10 times, with owner-reported problems including intermittent electrical issues and broken springs.
  • 2012-2014: Notorious for engine problems, specifically oil consumption due to a defective piston ring design.
  • 2010: Early models lacked electronic stability control as standard.
  • General: Driving experience is considered slow and noisy, and the interior has poor fit and finish. 

Considerations for other years
This video discusses the potential issues with the 2010-2014 Honda Insight, including engine and electrical problems: 59stravisp11YouTube · Nov 13, 2018

• Before 2010: Some owners have reported issues with the A/C in the 2010 or 2011 models. 
• 2019-2022: This later generation is considered more reliable, with the 2022 model having advanced safety features. However, the 2022 model has two NHTSA recalls. 
• 2020-2023: Some models in this range have a hybrid battery life of about 3 to 5 years, but this can vary depending on driving habits and environmental conditions. 
• General: Despite the improved reliability of later generations, hybrid components, particularly the hybrid battery, may need replacement after 100,000 to 200,000 miles. 

What problems do Honda Insights have?

A number of people who own a Honda Insight have shared that they're facing problems with the car's gear system that doesn't shift gears in the usual way. They've noticed things like the car shaking when they speed up, problems with the gears not staying in place, or taking a while to start moving properly.

What is replacing the Honda Insight?

In April 2022, Honda announced that the Insight would be discontinued after the 2022 model year, with production ending in June. It was replaced by a new Civic Hybrid.