Toyota, which has dominated the market for gasoline-electric cars so far, is looking to take back the crown after Honda’s new Insight became the first hybrid ever to top the best-sellers’ list in Japan last month…

Introducing the third-generation Prius, Executive Vice President Akio Toyoda said the upgraded model…costs about $3,000 less than the previous version…

Although gasoline prices have nearly halved since peaking last July, automakers expect growing interest in the fuel-saving technology with consumers continuing to trade in big SUVs in favor of small cars, even in the United States…

The new Prius will start at $21,620, or at least 300,000 yen less than what executives had originally said the car would cost.

With an eye on competing with the Insight, Toyota will also take the unprecedented move of…selling the entry-level grade of the previous Prius in Japan at the same price as the Insight’s $19,190.

The about-face came after Honda’s Insight became an instant hit after going on sale in Japan in early February. Honda sold nearly 10,500 Insights in April, more than double its target of 5,000 units a month.

Competition is good. Competition is fun. It ain’t going to be a bed of roses for management-types; but, it should help out us ordinary garden-variety consumers.