Honda's much-anticipated car is expected to compete head-on with Toyota Motor Corp's Prius, which remains the top-selling hybrid in the US Toyota is set to debut its next-generation Prius today, along with a Lexus hybrid on 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.

"With the introduction of the all-new Insight, we're opening up Honda's fun-to-drive, versatile and fuel-efficient hybrid technology to an entirely new group of buyers that previously may not have considered a hybrid because of either image or cost," John Mendel, executive vice president of American Honda, said in a statement.

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 17 kilometers per liter and 18.3 kmpl on the highway. The EPA certifies the Prius at 20.4 kph and 19.1 kpl 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 color-coded speedometer 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.