According to an article in Asahi Shimbun, Toyota plans on releasing a cheaper Prius in late 2009. They know they have to compete with the Insight, and plan on doing so by reducing the sticker price.

Honda said the Honda Insight hybrid vehicle is flying off the shelves. Orders are three times higher than their initial sales forecasts.

In Japan, the Honda Insight was 10th in sales for February while the Prius finished two places lower in 12th.

Honda recently announced the base price of the Honda Insight would start at $19,800. Prius currently stars at around $22,000.

Expect word of the lower prices on the Prius sometime in June 2009.

The company has not yet announced pricing for the car. These mileage figures are also preliminary. But this does make the Prius the number one most fuel efficient car on the market.

This year, the Prius, which is the best selling hybrid electric vehicle on earth is going to experience competition from the Honda Insight and the Ford Fusion hybrid, which boast similar fuel efficiency and features.

In the midst of a global recession, fuel efficiency has become a major demand of savvy auto consumers worldwide.

Toyota has put a great emphasis on fuel efficiency with their next generation Prius model, and now motorists can expect a 50mpg average.

“To get there, Toyota switched to a larger and more powerful 1.8-liter I-4 engine. Using what’s known as the Atkinson Cycle, the gasoline side of the powertrain develops more torque — in this situation good for better launch and for improved mileage. Fuel economy also is enhanced by the use of an electric water pump and the complete elimination of friction-causing engine belts.”

This year, Toyota is going to have more competition than ever. The Honda Insight and the Volkswagen Jetta TDI both enter the “green space” in order to try an unseat the Prius. The Prius is now Toyota’s 3rd best selling car in the United States.

Toyota plans on remaining the leader in the gasoline-electric hybrid market. According to the company, they claim the 2010 Toyota Prius will offer 3 industry firsts. This means it will be the first time anywhere these features are offered in an automobile.

Recently rumors began circulating that the Prius would offer an astounding 65mpg fuel efficiency, but the company says that was a result of miscommunication, and isn’t a true claim.

“For the record, Toyota has only a small test fleet of PHVs in the U.S and has never offered mileage estimates on PHV technology. These PHVs are being used for auto displays, brief demonstrations and university studies. They are very early ‘converted’ prototypes using double nickel metal-hydride batteries,” Toyota said in a statement.

Right now, the 2010 Toyota Prius looks like the car to buy for people who are interested in fuel efficiency.