Honda will debut its all new, yet to be named hybrid at the Paris motor show this year. The car will undercut arch rival Toyota’s Prius by a couple of thousand dollar in the North American market. The five doorhatchback will available starting from April 2009 across dealerships in America.

Richard Colliver, executive vice president of American Honda Motor Co, told an industry seminar in Traverse City, Michigan that the new five-door, five-passenger hybrid will be launched next spring.

The Civic hybrid starts at $22,600, while the Prius has a base price of $21,500. Colliver said Honda wants to make the hybrid affordable to a new generation of buyers.

Toyota wont make it easy for Honda as it plans to unveil the third generation Prius at the Detroit Motor show in January 2009.  Honda is planning to make 200,000 units of the new hybrid annually with 100,000 of them already earmarked for the US market.