Australia's first sub-$30K hybrid

Honda has unveiled its new Insight hybrid hatchback, with prices starting from $29,990.

Japanese manufacturer Honda has confirmed local pricing for its upcoming Insight five-door hybrid-electric Insight hatchback will start at just $29,990 (plus on-road costs), a hefty saving of more than $5000 over Australia's current cheapest hybrid car, the Honda Civic Hybrid.

The Insight is powered by a 1.3-litre petrol engine which is teamed up to a 10kW electric motor, which makes it less of a hardcore hybrid than some other models on the market, such as the 1.8-litre/60kW Toyota Prius.

There will be two models of the Insight on sale – the entry-level VTi model, priced from $29,990, and the top-end, more luxurious VTI-L, priced from $33,490 plus costs. Both models are offered with a continuously variable automatic transmission only.

Slightly smaller in size yet similar in styling to the Toyota Prius, the Insight will go on sale from December 6, and Honda Australia's managing director and CEO Satoshi Matsuzawa says the Insight could one day be the brand's biggest local seller.

"I think maybe it has the potential, but not so quick, because the current Australian market is not ready to boost the hybrid technology. But we want to ignite the boost with the Insight," Matsuzawa told Drive at the Sydney motor show.

"It's the very first [hybrid-electric] car with an affordable price, and it should be welcomed by the Australian people," Matsuzawa says. "So maybe it has the trajectory to pick up."

Until then, Honda expects to sell 200 Insights per month. Matsuzawa also confirmed Honda's plans for further hybrid models are moving swiftly, hinting that recently revealed Jazz Hybrid city car isn't far away.

"I think I want it to come pretty soon," he says, but admits that it's more likely to appear in 2012 than next year.

"Up until 2013, our vision over all of our line-up is to have 10 per cent [of the vehicles on sale in Australia] to be hybrid," he says.

Matsuzawa went on to confirm that an all-new Civic, including a revised hybrid-electric version, will make its international motor show debut early in 2011, with a local launch pencilled in for late next year.

Matsuzawa also hinted at an upcoming diesel version of the CR-V soft-roader, rather than a hybrid-electric model.

"I think under our 2020 vision, which is Honda's direction for the next 10 years, we have several different approaches to reduce fuel consumption by many ways," he says.

"The hybrid is one answer, and another we are developing is a diesel engine, a small capacity diesel engine. Also we are developing electric vehicles."

"So at this stage, there are many options," he says. "So we will take the best suitable technology for each model."

The show opens today at 5pm and runs until October 24, 2010.

Special Feature
Find all the news from the 2010 Sydney motor show, including detailed visitor information here.