Honda and Toyota have been competing to be the market leader in hybrid development and the latter's decision to revamp its Prius sedan and sell a V-6 hybrid of its Lexus RX330 may have influenced Honda's decision. The company's newest models, which combines a gasoline engine with an electric motor, can boost power by as much as 20% and raise fuel economy by 40%.

Honda currently sells two gas-electric cars, the Civic Hybrid and the Insight coupe.