Cars

Honda produces cheap electric cars

TH (according to VTC News) January 29, 2025 17:34

Japanese media revealed Honda's plan to produce small electric vehicles in the US, the product is expected to launch in 2026 at a competitive price.

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Honda Prologue

Following the success of the Prologue, Honda is reportedly looking to expand its pure electric vehicle lineup in the US. According to Nikkei Asia, the Japanese automaker is developing a completely new compact electric vehicle, expected to cost less than $30,000.

The new electric vehicle will be manufactured in Ohio and is one of seven models in the all-new 0 Series expected to launch by 2030. Manufacturing the vehicle in the US will help Honda's new product avoid high import tariffs.

This will help the new model have a starting price of less than 30,000 USD, which is considered an important factor to help Honda's product compete with some models using internal combustion engines of the same size.

Mechanically, the company will have to cut production costs by shrinking the size of the battery. This is the most expensive part of an electric car, accounting for about 30% of the total production cost. However, to ensure the vehicle's operating range, engineers will focus more on reducing the overall weight of the vehicle.

Building on the success of the Honda Prologue, a car using GM's Ultium platform, Honda is likely to build a new small electric car based on the next generation of the Chevrolet Bolt. The old Bolt model will stop production at the end of 2023 and is expected to have an all-new version this year with an expected price of under $30,000.

Nikkei said Honda's new small electric car will be launched after two other models, including an SUV and a sedan. It is likely that this will be a commercial version of the two 0 Series concepts that Honda introduced at CES 2025 in early January.

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Honda 0 SUV concept model.

The first product in the 0 Series will be produced later this year before hitting dealerships around early 2026.

Besides Honda, a number of other car manufacturers are also said to be planning to produce electric cars priced under $30,000, including Tesla and Ford. This is considered a move to limit the growing influence of Chinese brands thanks to cheap electric cars.

TH (according to VTC News)
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Honda produces cheap electric cars