“But I can tell you we’re not satisfied with the current state,” said Paul Nolasco, a Tokyo spokesman for Toyota, which has sold one million Prius vehicles since their introduction a decade ago. “The Insight’s popularity is evidence that the public is recognizing hybrid technology.”

The market for hybrids could be headed for a huge expansion. The development of cheaper technology, economies of scale and more government subsidies for environmentally friendly vehicles could take what was a niche technology into the mainstream.

A bigger market for hybrids could also ensure that they stay the green vehicle of choice over full electric or hydrogen cars, which remain prohibitively expensive. A report released by J. P. Morgan in October predicted that the global market for hybrids “will rise exponentially” to 9.6 million in 2018 from 500,000 units in 2007 and the current economic slump will not significantly slow that rise, the authors said.

The Insight could bring about a big turnaround for Honda, which tried selling hybrids for a decade without much success. In fact, it discontinued a previous Insight model in 2006, believing consumers found hybrids too expensive. But when sales of Toyota’s Prius rose as oil prices spiked, Honda quickly changed course.

Behind the less expensive Insight is an aggressive cost-cutting effort, as well as technological sacrifices.

Instead of the more complicated hybrid system used in the Prius, the Insight’s main source of power is a lightweight gasoline engine that is assisted by smaller batteries. That greatly reduces manufacturing costs, but gives the Insight lower fuel efficiency than the Prius  43 miles per gallon on the highway compared with 45 miles per gallon for the Prius. The Insight also shares parts with other Honda models, which helps the carmaker keep costs to a minimum.

Honda has also struck a chord with an overhaul of the car’s shape. One reason its previous hybrids failed to take off, analysts say, was that they did not come in distinctive shapes.