Prius price is challenging (to Honda)

Toyota Motors Corp. has offered a U.S. price for its Prius hybrid that may be a challenge to its closest rival, the new Honda Insight.

Toyota said the 2010 Prius would start at $21,750, about $1,280 more than the Insight, which is a smaller car with less fuel efficiency, USA Today reported Wednesday.

However, given a lack of details on standard equipment, Honda spokesman Sage Marie said the Prius I would likely be sold for $22,750.

Toyota spokeswoman Ming-Jou Chen said the Prius I would lack cruise control, a rear window wiper and an EV-only mode that allows the driver to extend its electric-only power system.

Adding a total of $6,300 in features to the higher-end Prius V would bringing the top price of a Prius to $34,320.

A features-loaded Insight would cost $24,770, Honda said.

The Prius is rated at 51 miles per gallon for urban driving and 48 miles per gallon on the highway. The Insight is rated at 40 miles per gallon in towns and 43 on highways, the newspaper said.

Marie said Insight, appeals to customers who didn’t consider a hybrid before. I think there’s enough room in the hybrid market for both.