Honda’s preparing to launch its Series 0 electric SUV in the U.S. next year, but while it’ll be the size of a CR-V, it’ll likely cost significantly more. That’s a problem for cost-conscious buyers.
In Japan, last week Honda CEO Toshihiro Mibe told journalists that going forward the competition in the U.S. will be affordable EVs cutting under $30,000. “So, for the future, we will consider coming up with EVs under $30,000 as well,” Mibe said.
But not necessary in the immediate future.
Doing so today would have challenges, according to the executive. “What’s making it difficult, of course, is with the IRA subsidies now gone, with the Trump administration in place, we have the sense that maybe EV growth has been moved back out, maybe out five years in the further future,” Mibe said.
Given the market conditions, Mibe said “if we think about whether we have to really come up with those affordable EVs right away, we get the feeling not really.”
“I feel like sometime in the future, like at 2030, at that point in time maybe we need to provide a wide, broad product range, including EV.”
Mibe said his team will be looking at the results of the interim election coming up and how the (Trump) administration will act in view of the environmental activities.
For now, Mibe noted Honda will grow its hybrid lineup. The automaker’s next-gen hybrid powertrains will start arriving in 2027, which will lower costs for the automaker by 20%, according to Honda.
Honda still expects to keep its promise of carbon neutrality by 2050, which means with the average car being over 10 years old, the automaker will need to accelerate its electrification offerings heading towards 2040. For the U.S. that will require lower-cost sub-$30,000 EVs, according to Mibe.
Honda provided The Drive with travel, accommodations, and access to engineers for the purpose of writing this story.