TOKYO — Toyota will continue to sell the current Prius in Japan when the all-new third-generation Prius launches this summer, according to a story in the Japanese press.

Japan's Nikkei business paper claims Toyota plans both to keep the outgoing Prius on sale, and to lower the price as a way of firing a shot across the bows of the hot new Honda Insight.

So there will be, confusingly, two cars called Prius on sale, or at least that seems to be the plan. Toyota's idea is to gut the interior as way of lowering the price, according to the paper.

The new Prius, which debuted at the 2009 Detroit Auto Show earlier this month, shifts up to 1.8 liters and the latest technology means the asking price will inevitably go up.

Right from the start, the story's been how the Insight's been set up to undercut the Prius, with Insight stickers in Tokyo widely expected to start below the psychological ¥2 million mark (some $22,222 at current exchange rates).

With the Prius selling in Japan today for $25,900-$37,217, it could be game, set and match for Honda, especially as Japan's a fast-moving, trend-driven market that loves anything bright, techy and new. The Insight clearly ticks all those boxes.

Toyota's press office in Tokyo refused to respond to Nikkei story. "We don't comment on future models," said a spokesperson.