Honda’s hybrid priced at 20% less than Toyota’s Prius

Honda Motor Co. rolled out its new Insight, revving up its hybrid car race with main competitor Toyota Motor Corp. With prices starting at ¥1.89 million (US$20,586.68), the five-door, five-seater sedan is roughly 20% lower than Toyota’s Prius hybrid. Honda’s proprietary new technology enabled it to make the vehicle lighter and more compact than existing hybrids, reducing production costs by about 40%. While the Insight is still about ¥200,000 (US$2,178.48) higher than comparable conventional cars, its price is expected to drop by about ¥150,000 (US$1,633.86) after the Japanese government introduces preferential taxes on eco-friendly cars in April. Honda said it will sell the Insight in the United States and Europe in the first quarter. (February 6, 2009)