Honda is prepared to compete with Toyota and their number-one selling Prius and will sell their new gas-electric hybrid at a lower price. Expected to launch next April, the new five-door vehicle will only be available as a hybrid car and will be smaller and less expensive than the Honda Civic.

Honda already has the most fuel-efficient vehicle models in the U.S. but has yet to release details regarding the new hybrid's fuel economy. To beat the Prius, the Honda car will have to get more than 48 miles per gallon in the city and 45 miles per gallon on the highway. Executive vice president of the U.S. chapter of Honda, Richard Colliver says that the company has set sales targets but will not necessarily try to outsell the Prius.

“We’re targeting sales of 100,000 units of this new vehicle in North America,” he said in a speech at the Center for Automotive Research Management Briefing Seminars.

The new vehicle will be sold in the U.S., Japan and Europe in early 2009.

» MSNBC Environment