American Honda Motor Co. said today that the five-door Insight will have a base list price of $20,470, including shipping. The Insight's main competitor, the Toyota Prius, starts at $22,720, including shipping.
Despite the weak economy and moderating gasoline prices, Honda spokesman Chris Martin said the company aims to sell 90,000 Insights in the United States in the first 12 months after its March 24 showroom debut.
Last year, Toyota sold 241,405 of its fuel-saving hybrids in the United States, down 12.5 percent from 2007 but nearly eight times more than its nearest competitor, Honda.
"There is strong demand for a hybrid in this price segment," Martin told Automotive News.
Last year, Honda sold 31,495 hybrids in the United States, most of them Civics. Two-thirds of Toyota's hybrids were Prius models.
Different type of hybrid
Honda is able to keep the price down because the Insight's battery pack is smaller and less expensive that the one used in the Prius. The Insight is a mild hybrid with an electric motor that provides a boost to the gasoline engine and that stops and starts the engine to save gasoline.
The Insight has an EPA fuel-efficiency rating of 40 mpg city/43 highway.
The Insight is the sole hybrid-only Honda vehicle. The automaker sells hybrid and gasoline-powered versions of the Civic compact.
From 1999 to 2006, Honda produced a three-door hybrid called the Insight. Honda dealers say they are excited about the redesigned version.
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"I think we will see pressure returning to get better miles per gallon and lower greenhouse emissions," said Peter Hoffman, president of Sierra Motor Co. in suburban Los Angeles. "The car is a great answer for those concerns, and I'm looking forward to seeing one."
Said Eric Kahn, owner of Friendly Honda in Poughkeepsie, N.Y.: "The key for the Insight is the pricing. There should be a price difference between the Insight and the competition."
William Walton, manager of automobile product planning at American Honda, said the Insight's target buyers are single young professionals in their 20s.
