Toyota is developing its own cost-effective hybrid which is expected to take on the 2010 Insight. According to a Japanese business daily, Toyota’s goals for the vehicle are to keep the price 20% to 30% lower than the Prius, and to get the car to market by 2011. This development comes just days after the Honda announced the 2010 Insight’s pricing.

Toyota wants the vehicle to come in below $19,800, which is the price of Honda’s hybrid, touted as the first hybrid in the market priced below $20,000. However, the mileage details of the Toyota’s new hybrid are not yet known. Meanwhile, the EPA rates of the Insight is said to deliver 40/43 mpg city/highway, while the 2010 Prius tops that with 51/48 mpg city/highway.

The all new 2010 Insight, the hybrid for everyone as it has been made known by the Honda, will arrive  this spring. Meanwhile, the Prius leads the Insight in fuel economy with an estimate of 46 miles-per-gallon in city-and-highway combined driving, compared with 41 miles per gallon for the Honda model. Toyota has sold almost 159,000 Prius hybrids in the United States in 2008.