American Honda Motor Co 2010

TORRANCE, Calif. -- Honda said its new Insight hybrid will be priced under $20,000 when it goes on sale in the U.S. later this month, as the No. 2 Japanese automaker takes aim at eco-friendly bargain shoppers.

American Honda Motor Co. said the 2010 Insight will arrive at U.S. showrooms starting March 24 with a manufacturer's suggested retail price of $19,800 for the base LX model. The Hybrid EX, which will include some premium features, will have a base price of $21,300, Honda said.

Honda has said it planned to make the Insight an economical hybrid. The car is expected to compete head-on for hybrid shoppers with Toyota's Prius, which has long been the best-selling hybrid in the U.S.

Toyota has not yet announced pricing for its much-touted 2010 Prius, but the 2009 Prius starts at $22,000, according to Toyota's Web site.

Honda said it has already received 18,000 orders for the Insight, outpacing the automaker's own target.

Continue reading for Honda's press release on pricing for the Insight. Click on smaller photos for much larger images.