Ford's Prius-fighter priced at $25,995

Ford is taking on Toyota in the hybrid market.

Ford Motor Co. said Thursday that its new C-Max hybrid small minivan will have a base price of $25,995 when it goes on sale this fall. That's $500 less than Toyota's Prius V wagon.

Ford says the C-Max's fuel economy will also beat the Prius V, which gets an estimated 42 miles per gallon in combined city and highway driving.

Toyota Motor Corp. has dominated the hybrid market for more than a decade. In March, for example, 65 percent of the 50,000 hybrids sold in the U.S. were made by Toyota, compared with 3.5 percent for Ford.

Ford hopes to change that with the five-seat C-Max, which will be sold only in hybrid, plug-in hybrid and electric versions.

Test drive: Toyota Prius V