New Generation Prius Now on Sale

Toyota has begun selling its new generation Prius, the world’s most successful hybrid car, as it battles rising competition from Honda’s Insight Hybrid which was introduced in the market few months ago.

But now Toyota faces a challenge from Honda, whose more cheaply priced Insight has sold briskly since it was introduced in Japan in February. In April, the Insight ranked as the top-selling vehicle in Japan — the first time a hybrid clinched that spot.

The Prius, which will start at 2.05 million yen ($21,620), will be sold alongside the entry-level grade of the second-generation Prius, which will cost 1.89 million yen, equal to Honda's new Insight Hybrid.

More than 1.25 million Prius cars have been sold worldwide since the vehicle entered the market in 1997.

Toyota has received more than 80,000 pre-sale orders for the new Prius in Japan, Executive Vice President Akio Toyoda said on Monday, unveiling the third-generation model.

Toyota is targeting monthly sales of 10,000 units in Japan. The world's largest automaker said it aims to sell up to 400,000 units globally a year of the car.