TOKYO, March 26 (Reuters) - Toyota Motor Corp (7203.T) is eyeing rival Honda Motor Co's (7267.T) hit Insight model as it decides on pricing for the next Prius and develops a smaller hybrid car that could reach showrooms as early as 2011. How much Toyota will charge for its third-generation Prius has become a hot topic after Japanese newspapers reported that the world's biggest carmaker was looking to make its flagship hybrid as affe starting price for the next Prius, due out in May in Japan, at 2.05 million yen ($20,940), or roughly $3,000 less than its smaller, less powerful and less fuel-efficient predecessor. Toyota eyes Honda for Prius pricing, small hybrid Poor wording of the title but otherwise an interesting article.