Could a more affordable EV future be on the horizon? Honda is weighing the possibility of introducing a sub-$30,000 electric vehicle (EV) in North America, according to a new report from Japanese outlet Nikkei.
Part of Honda’s new 0 Series of EVs, the budget-friendly electric vehicle would likely be manufactured in the U.S., with production potentially starting as soon as 2026. The move comes as Honda aims to bolster its presence in the competitive EV market, where it currently lags behind many rivals.
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Steering clear of looming tariffs
To keep costs low, Honda is expected to produce the vehicle domestically—possibly at its newly established EV manufacturing hub in Ohio. U.S.-based production will help Honda avoid some of the most severe consequences of President Trump’s 25% tariffs on imports from Mexico and Canada, set to take effect Feb. 1.
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Domestic production could also help the new model qualify for the $7,500 federal tax incentive, although whether such an incentive will be around by the time the new EV hits dealers is a big question. President Trump has made his intentions clear to cut the federal government’s support for electric vehicles, including axing the tax credit.
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What kind of EV could it be?
Honda
While Honda has yet to confirm details about the model, it would be part of the brand’s new 0 Series of EVs. The lineup, previewed at CES with the Saloon and SUV concepts, aims to deliver a balance of style, efficiency, and driving enjoyment. Given market trends, a compact crossover seems like the most likely body style for the budget-friendly model, though Honda has not disclosed specifics.
The start of a bigger manufacturing strategy
The automaker’s new EV could see production in Ontario, Canada, where it’s currently planning for a four-factory EV manufacturing network. But, with its Ontario operation not expected to open until 2028, the company’s Ohio plant is the best candidate for the initial production of Honda’s new low-priced EV.
Honda
The potential new EV could serve as a successor to Honda’s previous attempts at electric models, including the Honda e:NY1—which never reached U.S. shores. The company has learned from these earlier efforts, and the upcoming model is expected to offer improved range, efficiency, and performance.
Will it come to the U.S.?
While Honda executives have expressed a desire to introduce a low-cost EV in the U.S. by 2030, the decision to bring this specific model stateside is not yet finalized. “Honda 0 series covers models globally of all sizes and price ranges” Andrew Quilling, a senior manager of public relations at American Honda, told InsideEVs. “At this time, only two models have been confirmed for North America—the 0 SUV and 0 Saloon, both previewed at CES. We aren’t going to speculate about this model.”
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Final thoughts
With a growing demand for affordable EVs and limited options in the segment, Honda has an opportunity to carve out a strong position in the market. If the company follows through with its plan, an American-made, budget-friendly Honda EV could be a game-changer—assuming it’s actually good, of course.
For now, all eyes are on Honda’s next move, with an official concept preview possibly coming later this year. If the pieces fall into place, budget-conscious EV shoppers in the U.S. may soon have a new option to consider.
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