The news that Honda has officially started production on their FCX Clarity is definitely good, however in terms of the viable green car market, it's not as relevant as some of the company's other initiatives. The FCX Clarity will only be available in a very small market (southern California anyone?), it's not overly cost-efficient for drivers who do live in the appropriate area and adequate fueling stations are still years away from coming to fruition.

For drivers that don't live in SoCal or can't afford the $600 per month lease (which let's face it, is most of us), Honda has outlined plans for "a number of hybrids that would be priced considerably more aggressively than the Toyota Prius." First up will be a dedicated hybrid car with no gasoline counterpart, but that does feature similar elements to other Honda vehicles. The style of five-door hatch will be based on the Honda Fit with taller and slightly wider dimensions, while the Integrated Motor Assist feature of the Civic will be implemented with the same 1.3-litre engine, as well as an electric motor run on a nickel-metal-hydride battery pack.

Honda is confident the new hybrid will not only compete with the Prius, but "overwhelm and overtake" it according to CEO Takeo Fukui. Toyota won't go down without a fight though, and will offer three versions of the next Prius, including a smaller version of the one currently on the market.

Over the next few years Honda is also expected to introduce a new version of the Civic hybrid, a Fit hybrid and a hybrid sports car based on their CR-Z concept car.

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