New Honda Insight to rival Prius

Car maker Honda has announced plans to reinstate the defunct Insight nameplate - this time on a hybrid-only vehicle targeted at consumers in Europe, Japan and North America.

The move is aimed at competing with rival Toyota, which has enjoyed success with its own hybrid-only model, the Prius.

Nissan, meanwhile, is developing its own gas-electric technology, but is likely to offer a hybrid version of one of its standard engine vehicles rather than come up with a hybrid-only car.

Honda plans to unveil a concept model of its new Insight at the Paris Motor Show in October. It will be a five-door compact hatchback, based on the company's fuel cell vehicle, the FCX Clarity.

The Insight will be available from next April and Honda hopes to sell 200,000 a year.

The old Insight was the first mass-produced hybrid sold in the US in 1999 but was phased out in 2006 after sales worldwide of just 17,000.

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