The new car on the market.

The world's largest automaker says it aims to sell up to 400-thousand units globally a year of the new-look Prius.

Akio Toyoda, the grandson of the company's founder, and the incoming president of Toyota Motor Corporation, drove the new model onto a stage at a packed Tokyo showroom.

He said the car was eco-friendly and that driving it had a similar impact on emission cuts as planting trees "across land 10 times the size of Tokyo".

Toyoda, 53, was tapped in January to take the helm at the world's biggest automaker, the first time in 14 years it has turned to the charisma of its founding roots for top leadership, mainly to bring employees and affiliates together and steer the automaker through deep troubles.

Both Toyoda's presence and new Prius are symbolic of Toyota Motor Corporation's pursuit of a turnaround from its worst annual loss since its 1937 founding.

The Prius, now in its third generation since its 1997 introduction, is the best-selling hybrid in the world, racking up a cumulative 1.256 (m) million units sold in more than 40 nations and regions.

But now Toyota faces a challenge from Honda Motor Co., whose more cheaply priced Insight has sold briskly since it was introduced in Japan in February.

In April, the Insight ranked as the top-selling vehicle in Japan, the first time a hybrid clinched that spot.

Toyota said its Japan prices for the Prius would start at 2.05 (m) million yen, or about 21,600 US dollars at current exchange rates, less than its predecessor model.

But in an unusual move aimed at competing against the Insight, Toyota also said it will continue to sell the current Prius in Japan, and cut its price.

It targets rental and corporate customers, and will sell for 1.89 (m) million yen, the same price as the Insight.

Toyota had already given the US prices for the 2010 Prius, starting at 22,000 US dollars, unchanged from the base price for the 2009 model.

It is also promising a more basic US model as well for later this year starting at 21,000 US dollars.

The new Prius gets a combined 50 miles per gallon (mpg), compared with 46 mpg for the 2009 model, according to Toyota.

Toyota is promising 38 kilometres per litre, which converts to 90 miles per gallon, in Japan, for the latest Prius.

Toshio Aritake, an auto analyst at the showroom in Tokyo called the Prius "very competitive."

SHOTLIST

Tokyo, May 18th

1. Zoom out from Prius logo to hybrid car, incoming president of Toyota Motor Corporation getting out of it and walking out on podium

2. Photographers

3. SOUNDBITE (Japanese) Akio Toyoda, Incoming president of Toyota Motor Corporation:

"We contribute to ecology as it (Prius) has the same impact on emission cuts as planting trees would across land 10 times the size of Tokyo."

4. Auto analyst Toshio Aritake standing by car

5. SOUNDBITE (English) Toshio Aritake, Auto analyst:

"I think it's going to be very, very competitive in terms of pricing and whatever it has to offer. I haven't seen the inside yet. But it looks extremely competitive, and that's something no other manufacturers at this time can match in terms of quality and pricing."

6. Close of hybrid logo

7. Wide of new Prius car

8. Close up of new Prius car's bonnet

9. Close of Toyota logo with hybrid synergy drive panel

10. Engine

LEADIN

Toyota has rolled out the revamped Prius in Tokyo.

The company's in confident mood, saying it already has 80-thousand advance orders in Japan for the remodelled hybrid, amid intensifying competition with Honda's rival offering the Insight.

SHOTLIST

1. Zoom out from Prius logo to hybrid car, incoming president of Toyota Motor Corporation getting out of it and walking out on podium

2. Photographers

3. SOUNDBITE (Japanese) Akio Toyoda, Incoming president of Toyota Motor Corporation:

"We contribute to ecology as it (Prius) has the same impact on emission cuts as planting trees would across land 10 times the size of Tokyo."

4. Auto analyst Toshio Aritake standing by car

5. SOUNDBITE (English) Toshio Aritake, Auto analyst:

"I think it's going to be very, very competitive in terms of pricing and whatever it has to offer. I haven't seen the inside yet. But it looks extremely competitive, and that's something no other manufacturers at this time can match in terms of quality and pricing."

6. Close of hybrid logo

7. Wide of new Prius car

8. Close up of new Prius car's bonnet

9. Close of Toyota logo with hybrid synergy drive panel

10. Engine

STORYLINE:

Toyota rolled out the revamped Prius in Tokyo on Monday, and said it already had 80-thousand advance orders in Japan for the remodelled hybrid amid intensifying competition with Honda's rival offering, the Insight.

The world's largest automaker said it aims to sell up to 400-thousand units globally a year of the car.

Akio Toyoda, the grandson of the company's founder, and the incoming president of Toyota Motor Corporation, drove the new model onto a stage at a packed Tokyo showroom.

He said the car was eco-friendly and that driving it had a similar impact on emission cuts as planting trees "across land 10 times the size of Tokyo".

Toyoda, 53, was tapped in January to take the helm at the world's biggest automaker, the first time in 14 years it has turned to the charisma of its founding roots for top leadership, mainly to bring employees and affiliates together and steer the automaker through deep troubles.

Both Toyoda's presence and new Prius are symbolic of Toyota Motor Corporation's pursuit of a turnaround from its worst annual loss since its 1937 founding.

The Prius, now in its third generation since its 1997 introduction, is the best-selling hybrid in the world, racking up a cumulative 1.256 (m) million units sold in more than 40 nations and regions.

But now Toyota faces a challenge from Honda Motor Co., whose more cheaply priced Insight has sold briskly since it was introduced in Japan in February.

In April, the Insight ranked as the top-selling vehicle in Japan, the first time a hybrid clinched that spot.

Toyota said its Japan prices for the Prius would start at 2.05 (m) million yen, or about 21,600 US dollars at current exchange rates, less than its predecessor model.

But in an unusual move aimed at competing against the Insight, Toyota also said it will continue to sell the current Prius in Japan, and cut its price.

It targets rental and corporate customers, and will sell for 1.89 (m) million yen, the same price as the Insight.

Toyota had already given the US prices for the 2010 Prius, starting at 22,000 US dollars, unchanged from the base price for the 2009 model.

It is also promising a more basic US model as well for later this year starting at 21,000 US dollars.

The new Prius gets a combined 50 miles per gallon (mpg), compared with 46 mpg for the 2009 model, according to Toyota.

Toyota is promising 38 kilometres per litre, which converts to 90 miles per gallon, in Japan, for the latest Prius.

Toshio Aritake, an auto analyst at the showroom in Tokyo called the Prius "very competitive."

SHOTLIST

1. Wide of news conference with former and new presidents of Honda Motor Company arriving

2. Mid of media

3. SOUNDBITE: (Japanese) Takeo Fukui, outgoing President and Chief Executive of Honda Motor Company:

"Due to the rapid fall of the global economy, we are seeing no signs of recovery. It is necessary to make big changes in the management to survive through this crisis. We have assigned Ito so that Honda will overcome the hardship and carry on to a new level under a young leader. Ito will continue to run the research department. Amid the severe circumstances, Ito will pull Honda with strong leadership and will continue developing attractive products for the future with top of the line technology."

4. Wide of news conference

5. SOUNDBITE: (Japanese) Takanobu Ito, new President and Chief Executive of Honda Motor Company:

"The precise understanding of the business worldwide and quick decision making is necessary to overcome the severe circumstances. Open communication will bring the company together and allow Honda to overcome the critical time."

6. Close up of logo, reading (English) "Honda The Power Of Dreams"

7. Mid of entrance to Honda building

8. Wide of Honda's showroom with Honda's hybrid car in display

9. Honda's robot, Asimo, dancing

STORYLINE

Honda Motor Company named Takanobu Ito as its new president and chief executive on Monday, in an apparent effort to spur a turnaround under fresh, younger leadership.

Ito, 55, is an expert in automobile development with experience in the US.

Ito replaces Takeo Fukui, Japan's second largest automaker said in a statement.

The move comes as Honda and all Japanese automakers grapple with a slump in global demand for cars.

Through Ito's appointment, Honda appears to be sending a message of its determination to turn a new leaf and press ahead with technological innovations, its longtime strength, to lift its sagging business.

"Due to the rapid fall of the global economy, we are seeing no signs of recovery. It is necessary to make big changes in the management to survive through this crisis," said Fukui, outgoing President and Chief Executive of Honda Motor Company, speaking at a news conference on Monday.

The move, part of a reshuffling of its board, follows a similar change at the top at bigger rival Toyota Motor Corporation, who recently named Akio Toyoda, a member of the founding family, replacing Katsuaki Watanabe.

The change at Honda, which makes the Insight hybrid and Accord sedan, still needs shareholders' approval at a meeting in June.

Ito said he would continue in Fukui's footsteps in developing ecological and affordable products such as the Insight.

"The precise understanding of the business worldwide and quick decision making is necessary to overcome the severe circumstances," he told reporters at Honda's headquarters.

There had been some speculation that Fukui, 64, who has already served six years as president, may step down, but the timing was uncertain.

Fukui will become an adviser and remain on the board.

Ito had already been scheduled to head the research and development unit of Honda in April, but now he will oversee the entire company.

Honda, has fared relatively better than Toyota, the world's biggest automaker, in riding out the downturn, partly because Honda doesn't make large trucks and tends to be more nimble.

But even Honda is also hurting and has been curbing production and reducing workers at its plants.

Honda, whose October-December profit plunged 90 percent, is expecting 80 billion yen (856 million US dollars) in profit for the fiscal year ending March 31.

Earlier, it had projected a 185 billion yen profit.

The strong yen, which erodes the earnings of exporters, has also cutting profits at Japanese automakers, including Honda.

During his tenure, Fukui, who built his earlier career developing motorcycles, led Honda's global expansion, including in the critical US market.

He also led Honda's foray into the small jet business and recently bought the hit Insight hybrid to market.

After joining Honda in 1978, Ito began his career as an engineer designing chassis, the main part of an auto, and was in charge of developing the frame structure for the NSX sports car, which went on sale in 1990.

From 1998 to 2000, Ito served as executive vice president at Honda R&D Americas Incorporation, where he helped develop the first sport-utility vehicle under the Acura brand, Honda's luxury models.

The MDX went on sale in the US in 2000, according to Honda.