Honda unveiled the world’s least expensive hybrid car in an attempt to win over motorists facing high fuel costs. At an expected price or around $18,500, the new Honda Insight will undersell the best selling Toyota Prius by at least $5,000.

Honda is aiming for 200,000 sales annually, half of which are for the North American market. This which puts it slightly ahead of the 181,000 Priuses that Toyota sold in 2007.

The Concept of the New Honda Insight

The concept version of the new Insight will be formally revealed to the public at the Paris Autoshow in October. Although only a concept car, the Insight looks more than production ready. Honda said the Insight will show off more than 90 percent of the concept car (see picture). The new Honda will be a five-door family hatchback and is expected to give owners around 60 miles per gallon.

The New Honda Insight Prototype

The Insight will get a lighter and cheaper electric motor than the Civic Hybrid. The Nickel-metal-hydride battery pack will be stores under the trunk floor. Honda said, the lithium-ion batteries are not a viable option yet.

Stay tuned!