Insight into Honda's hybrid direction

Honda's Insight Concept was revealed to local media on Friday. It is the first time the company's new hybrid has been seen in the metal Down Under.

The new Insight will make its local debut at the Melbourne International Motor Show this month. The car uses a newly developed hybrid system with a 1.3-litre i-VTEC engine and Honda's Integrated Motor Assist (IMA) (more here). An Ecological Drive Assist System (Eco Assist) is standard equipment on all variants.

Industry pundits have commented the Insight's body style is reminiscent of the Toyota Prius, but the aerodynamic shape achieves a coefficient of drag of 0.28, according to Honda.

Honda released the production version of the new Insight in Japan two weeks ago and already the company has received 10,000 orders; double the target number expected for the new model.

Honda Australia's Managing Director Yasuhide Mizuno told assembled journalists that the company's aim for the new model is to offer an affordable hybrid vehicle to "mainstream customers".

"The Insight will be a pioneer, taking hybrid technology to a new era of affordability. It will give more people a chance to get behind the wheel of a hybrid vehicle," he said. "This new Insight presents the next step of our aim to offer a hybrid for everyone."

The original Insight earned the Engine of the Year award when it was introduced in 2000 and sold 17,000 units globally. In January this year Honda announced that its global hybrid sales had exceeded 300,000.

According to Honda, the new Insight's battery is more compact and lighter than previous-generation technology. The Insight is the company's first hybrid to use Variable Cylinder Management, shutting down cylinders when the engine isn't under load.

The new Insight model heralds the beginning of the next phase of Honda's hybrid vehicle strategy which will include a new Civic hybrid, the CR-Z 'sports hybrid' and a hybrid version of the Jazz light car.

The production version of the Insight doesn't look much different to the Concept model. The modern interior remains though it is toned down from the showcar. The IMA system takes pride of place on the dash a la the Concept, however, the latter's slimline side mirrors and door handles have been replaced with more 'functional' types. The wheels are also a different design.

It is yet to be decided whether Australian-delivered Insights will come with the large sat-nav unit featured in the Concept vehicle.

Results for consumption and emissions ratings in local testing have yet to be published, however, Honda Australia's Public Relations Manager Mark Higgins says the Insight's results shouldn't be too much different than the current Civic Hybrid.

Importantly, Higgins told the Carsales Network that his company would be making the Insight more affordable than the Civic.

"The aim has always been to have it under $30,000," Higgins said. Currently the Civic Hybrid starts at $35,990.

However, Higgins says the currency exchange rate "has altered quite a lot" which will affect final pricing.

Honda Australia expects to offer the new hybrid model to local customers in the first quarter of 2010. The company's allocation will be determined by the vehicle's sales success in North America -- the Civic Hybrid model's best market -- and the UK.

In terms of worldwide Civic Hybrid sales, Australia ranks about eighth in the top ten and therefore will be allocated Insights accordingly, which may delay its arrival until the second quarter of 2010.