Toyota Motor Corp. on May 18 launched its much-awaited new Prius gasoline-electric hybrid to face off against rival Honda Motor Co.'s Insight hybrid released in February.

Officially priced, as expected, at ¥2.05 million, the new Prius has sparked a flurry of buy orders.

Despite the economic slump, Toyota said it has received orders for more than 80,000 units, compared with the 18,000 orders Honda received for the Insight in its first month.

Toyota's strategy to slash the price of the remodeled third-generation Prius is paying off, experts say, noting the sticker price is closer to the Insight's, which grabbed consumer attention with a price of ¥1.89 million.