To counter this trend, the automaker has confirmed it will be launching its own low-cost, small hybrid along with the updated 2010 Prius.
The lower cost car is expected to reach showrooms in 2011.
"We are developing a low-priced hybrid vehicle like Honda's Insight," said Prius Cheif Engineer Akihiko Otsuka said. "We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz [sold in Japan] and Yaris."
Source (Automotive News)