For years, electric vehicles (EVs) have existed as an opulent product that few people could buy. While the market has grown, yet an affordable EV is missing. Honda is preparing to address this market.
Multiple sources indicate that Honda plans to introduce an electric vehicle priced under $30,000 for the American market during the next calendar year. This strategic move is happening a decade after all major automakers have already entered the EV market.
A key factor in this decision is the decreasing costs of electric car battery materials which now enables companies to create more affordable electric vehicles. The company will manufacture the new budget-friendly EV in its Ohio facility. This plant already produces Acura RSX and will soon build the Sony Honda Mobility Afeela 1. This move will also enables the company to avoid potential trade barriers.
People remain skeptical about Honda’s ability to produce a $30,000 affordable EV within the existing limited time frame. The company follows a conservative strategy by thoroughly studying market dynamics before emerging with vehicles like Civic and CR-V. It remains to be seen whether Honda is able to fulfill its promise in such a short duration.
Reference- InsideEVs, NIKKEI Asia, The Verge, Clean Technica