DETROIT - Honda has unveiled its next-generation hybrid, the Insight, at the North American International Auto Show and said the car will arrive in U.S. showrooms this April.
Honda's much-anticipated car is expected to compete head-on with Toyota's Prius, which remains the top-selling hybrid in the U.S.
Toyota is set to debut its next-generation Prius on Monday, along with a Lexus hybrid on Sunday called the HS250h.
Honda said the 2010 Insight will have a lower price than the Civic Hybrid, which has a base price of $23,650.
John Mendel, executive vice president of American Honda, says Honda is opening the technology to an entirely new group of buyers.
The Insight, a five-door sedan, is modeled after Honda's FCX Clarity fuel-cell car, the Japanese automaker said.
It said the Environmental Protection Agency rates the Insight's fuel economy at 40 city miles per gallon and 43 on the highway. The EPA certifies the Prius at 48 city miles per gallon and 45 on the highway.
Honda said the Insight will feature an onboard system, dubbed Eco Assist, designed to help drivers improve their fuel economy during trips.
The system will have a colour-coded speed display that gives drivers feedback on current fuel economy, and a function that gauges the car's fuel economy during a trip and for the car's lifetime.
Honda estimates the Insight's driving range at more than 650 kilometres.
Honda's debut of the Insight comes as hybrid sales have tumbled.
The gas-electric cars sold briskly during the run-up in gas prices last summer but have since come down sharply as fuel prices collapsed.
The auto Web site Edmunds.com reported that hybrid sales fell 43 per cent in December and 50 per cent in November.
Sales of Honda's Civic hybrid fell an even larger 68 per cent last month.
(Agencies)