Car Giant Honda Hopes to Rev Up EV Rivalry With New $30,000 Model

Japanese car giant Honda (HMC) is gearing up to launch a new sub-$30,000 EV in the U.S. market to challenge electric and gas-powered rivals.

Honda’s First Stop Will Be The U.S.

According to reports in the Japanese media, Honda is looking to bring the small, low-cost, electric vehicle to North America by as early as 2026. It is understood that the vehicle will be made in Japan, and it will be part of the carmaker’s upcoming “Honda 0 Series” EV lineup. North America will be the first port of call for the vehicle with a global rollout also in the works.

Japan’s second biggest carmaker has been slower off the grid when it comes to battery-powered, and fuel-cell vehicles than its U.S., European and Chinese rivals such as Tesla (TSLA), Volkswagen (VWAGY) and BYD. However, it wants battery-powered and fuel-cell vehicles to make up all of its new car sales by 2040.

Honda Gears up for New Trump Auto Journey

The timing of its new launch into the U.S. is interesting given newly elected President Trump’s decision in his first hours in office to ditch predecessor Joe Biden’s order that half of all new vehicles sold in 2030 should be electric.

Trump also announced that he would stop the distribution of unused government funds, meant for vehicle charging stations. He also called for the termination of a waiver that allowed states to implement zero-emission vehicle rules by 2035 and stated that his administration would evaluate the possibility of ending EV tax credits.

The move by Honda therefore could be a challenge to existing electric vehicle rivals by bringing in a more affordable – though still expensive to many ordinary drivers – model and to gas rivals who might be hoping for a clearer road in terms of sales heading into the next decade.

Honda’s shares were flat in pre-market trading.

Is Honda a Good Stock to Buy Right Now?

On TipRanks, HMC has a Moderate Buy consensus based on 1 Buy rating.

Disclosure