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Honda has unveiled the 2010 Insight Hybrid, a new hybrid-electric car meant to take on Toyota’s Prius as the top hybrid car on the market. It has three things going for it: price, innovation, and price.

Based on the FCX Clarity platform, the five-door hatchback is a little smaller than the Prius, but utilizes the advantages of an electric drive-train to maximize interior space, coming out about even in that regard. The car is due to hit showrooms in the U.S. on Earth Day (April 22) as a 2010 model.

The price is where Honda will really gouge Toyota, though. This car is expected to sell for around $20,000USD, several thousand less than the Prius. For all that, it doesn’t skimp. It’s got Honda’s signature snappy acceleration, an interactive (and very cool) dashboard, and usable space and comfort too.

Honda plans to have 100,000 of these cars available for purchase in America and analysts thinks that they’ll sell, and then some. Many of those sales could come at the expense of the Prius.

The car has been in development for over two years and gets it name from the first hybrid-electric car sold in America, the Honda by the same name of 1999. Honda dropped the Insight in 2006, along with their hybrid Accord, for lack of sales, but was already quietly working on this new model.

The EPA numbers aren’t available for sure yet, but are expected to be in line with the Prius at about 40/43mpg (40 in-city/43 freeway). A test drive by a conscientious driver at the Detroit Auto Show got a whopping 63mpg while a less thoughtful driver still managed to get 52mpg.

The car sports some great innovation, including a smaller controller and more efficient batteries (5.75amp/h nickel-metal hydride) than the Prius. Extras on the interior include: an iPod holder, configurable storage compartments, a retractable cargo cover, and options like a navigation system and Bluetooth connectivity.

The interactive Ecological Drive Assist System (dashboard) sports speedometer backlighting that indicates your “green” driving, helping you hypermile the car. A toggle-able “econ mode” allows you to lower the sensitivity of the throttle so that a bumpy ride won’t change your throttling on the gas pedal. It also reduces A/C demand and does some under-hood tricks to maximize efficiency.

The Insight is also reported to have better brakes, handling, and more responsive steering than the Prius.

Honda has big hopes for the Insight, aiming for 200,000 sales worldwide in its first year. Toyota and Hyundai, however, will be introducing similarly-priced hybrids in the next year or two, so Honda’s victory may be short lived.

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Sources: 1, 2