With the Toyota Prius still providing stiff competition, it appears that Honda may be willing to undercut the price of its own Insight Hybrid car as it bids to land a larger share of the green car market.

According to reports, the Japanese car manufacturer is considering introducing two hybrid cars that will be priced lower than the Insight. The Insight itself is already cheaper than Toyota’s Prius, albeit it only achieves 41mpg compared to the Prius’s 50mpg.

However, with Honda suggesting that first year sales of the Insight are likely to miss the manufacturer’s target by at least 30 per cent in the USA, it is now looking at alternatives. 

Honda President Takeo Fukui told the Asahi Shimbun newspaper that the manufacturer was considering adding the cheaper hybrids to its already announced line-up which includes hybrid versions of the Civic and Accord, as well as the CR-Z hybrid coupe. In addition Honda is expected to launch a hybrid version of its Fit model in fiscal year 2010/11.

Automotive experts IHS Global Insight have reported that due to declining global vehicle demand it expects vehicles with hybrid powertrains, and particularly cheaper models, to be a rare bright spot for the automotive industry. However, with competition in the sector mounting, the pressure is on the vehicle manufacturers to be competitive both in terms of technology and pricing.