Honda's Sub-$30,000 EV To Take On Tesla Model 3 In North America By 2026

Japanese automaker Honda Motor Co. HMC will reportedly launch a new EV in North America priced below $30,000 as early as 2026.

What Happened: The vehicle will be produced locally and rolled out as part of the company’s Honda 0 series lineup, according to a report by Nikkei Asia.

Last year, Honda said it would launch the 0 series for global markets starting from North America in 2026. The company did not divulge price points then.

The Japanese automaker aims to have electric vehicles and fuel-cell electric vehicles account for 100% of its global sales by 2040.

Competition From Bigshot: The Tesla Model 3 is currently among the affordable but popular EV variants in the U.S. The base version of the Model 3 starts at $42,490 in the U.S.

In Tesla's last quarterly report, the company said that its plans for new vehicles, including more affordable ones, remain "on track" for the start of production in the first half of 2025. The company said these vehicles will be produced on the same manufacturing lines as its current lineup.

Tesla CEO Elon Musk also said in October that he expects vehicle sales to grow by 20%-30% in 2025, possibly on the back of these new vehicle models. However, it is unclear if the affordable vehicle will be priced below $30,000 or retain the form factor of Tesla’s remaining lineup.

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