Honda, a leader in the automotive industry in producing fuel efficient vehicles, showed off what it calls an "affordable" hybrid family car at the Paris auto show, hoping to cut into the dominance enjoyed in hybrids by Toyota, which makes the popular Prius.
The concept car will be unveiled as a production model in January, Honda says.
The new hybrid, named Insight after a previous Honda hybrid, will go on sale early in 2009.
Its sticker price is expected to start at around $20,000.
Fuel economy numbers aren't available yet.
The Insight will be a five-passenger hatchback.