Honda's new Insight hybrid will undercut its most obvious rival, the Toyota Prius, by over £2000.
The entry-level Insight will start at £15,490 for the SE model, which comes with 15-inch alloys and air conditioning as standard. Prices for the Toyota Prius start at £17,870 for the T3 CVT model, £2380 more than cheapest Insight.
Higher-specification ES Insights will be priced from £16,790; they get 16-inch alloys, automatic lights and windscreen wipers, cruise control, heated seats and a paddle-shift gearbox.
Satellite navigation and a hands-free telephone system are added to the range-topping Insight ES-T CVT, which completes the range at £18,390.
The new Honda Insight will go on sale in the UK at the beginning of April.