Honda Is Working On A More Compact Electric Vehicle For The US Market.

Honda is developing a completely new, smaller electric vehicle expected to retail for less than $30,000, with sales in the US potentially starting as soon as 2026.

This information was reported by the Japanese outlet Nikkei, which also mentions that the new electric vehicle will be manufactured in Ohio and is one of seven models from the upcoming O-series set to launch by 2030. Manufacturing the new EV domestically will help it avoid the steep tariffs proposed by President Trump, and a retail price below $30,000 will align it with some SUV models.

To reach this competitive price point, the strategy includes minimizing the battery size, which is the costliest component of an electric car, representing approximately 30 percent of production expenses. However, to maintain a reasonable driving range, engineers are focused on reducing the vehicle’s overall weight.

Nikkei says the small EV will come after two other EV models, an SUV and a sedan, that are expected to cost between $50-60k.

Given the success of the Honda Prologue, which was built around GM Ultium hardware, it’s possible that Honda could base its smaller EV on the next Chevrolet Bolt. The old Bolt went out of production at the end of 2023, but Chevrolet will launch an all-new model this year that should cost less than $30,000.

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