Summary
- Honda could be building a small EV in the U.S. costing less than $30,000 as early as next year
- The new EV would be part of the Honda 0 Series, expected to have seven models by the end of the decade
- The Honda 0 Saloon and SUV prototypes were previewed at CES 2025, with production versions expected in 2026
- Honda is retooling existing plants and building a battery plant in preparation for mass EV production
- Honda CEO Toshihiro Mibe hinted at the possibility of an affordable EV priced around $30,000 in the late 2020s, depending on advancements in battery technology
Article
Honda is potentially changing its plans to create an affordable electric vehicle, with a new report suggesting that the company may build a small EV costing under $30,000 in the U.S. as early as next year. This decision is likely motivated by a desire to avoid new tariffs on imported vehicles under the Trump Administration. The sub-$30,000 EV would be part of Honda’s 0 Series, which is set to include seven models globally by the end of the decade.
The new EV would be the smallest and cheapest of the Honda 0 Series, which was previewed with a Saloon (sedan) and SUV prototype at CES 2025. Honda stated that the production version of the SUV prototype would be available in the first half of 2026, followed by the sedan later in the year. These vehicles will be built in Ohio, alongside the Acura RSX electric SUV and the Afeela 1 electric sedan from the Sony Honda Mobility joint venture.
In preparation for mass EV production in the U.S., Honda is retooling three existing plants and constructing a $3.5 billion battery plant. The automaker has indicated that the mix of EV and gasoline-vehicle production will be influenced by market demand, but has projected the potential to produce hundreds of EVs per day at its revamped Marysville Auto Plant in Ohio. However, it remains uncertain if the sub-$30,000 EV will be among the vehicles manufactured in Ohio next year.
Honda’s CEO Toshihiro Mibe hinted at the potential for an affordable EV “very late in the 2020s” during CES 2024, suggesting that breakthroughs in battery technology, particularly solid-state batteries, would be crucial in achieving a $30,000 price point for such a vehicle. American Honda chose not to comment on the recent report about the sub-$30,000 EV plans, indicating that further developments may be forthcoming regarding Honda’s approach to affordable electric vehicles in the future.
Overall, Honda’s potential shift towards creating an affordable electric vehicle for the U.S. market reflects the growing demand for EVs and the need for automakers to adapt to changing market conditions and regulatory environments. By potentially building the new EV in the U.S. and focusing on battery technology advancements, Honda is positioning itself to compete in the increasingly competitive electric vehicle market while also addressing affordability concerns among consumers. It remains to be seen how these plans will unfold and whether Honda will successfully introduce a sub-$30,000 EV to the U.S. market in the near future.
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