• Reuters, Wednesday, March 11, 2009 11 AM

The base price for Honda's new Insight hybrid, which goes on sale in the U.S. later this month, will be 10% lower than that of the market-leading Toyota Prius. It will start at $19,800, making it the first hybrid to sell here below $20,000.

Honda has positioned the five-door Insight as an economical alternative to the Prius, which currently starts at $22,000. "I think what they are looking to do is to bring a new buyer to the marketplace for hybrids, people who are interested but maybe couldn't afford the Prius," says Jack Nerad, an analyst at Kelley Blue Book.

The Prius leads the Insight in fuel economy with an estimate of 46 miles-per-gallon in city-and-highway combined driving, compared with 41 miles per gallon for the Insight. Pricing has not been announced for the all-new 2010 model Prius that will hit U.S. showrooms later this year.

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