Toyota to sell two Prius models in response to Honda

The battle is on between Honda and Toyota in the hybrid car market. In response to Honda planning to introduce the Honda Insight hybrid which will cost over 10% less than the Toyota Prius, Toyota is planning on selling the 3rd generation Prius in addition to the smaller Prius model that is already available. The move is a clear attempt to ride out the Honda challenge in the hybrid car market that Toyota has dominated.

"Honda has made an excellent car that addresses ecological problems," Toyota President Katsuaki Watanabe said of the Insight at a Tokyo showroom. "It will stimulate the development of hybrid technology, including cost-cutting. And that is also our goal."