The company has a target to have battery-powered and fuel-cell vehicles make up all of its new car sales by 2040. Shares of Honda Motor ( HMC) traded flat in premarket action at $28.80 vs. the 52-week range of $23.41 to $37.90.

Honda (NYSE:HMC), the Japanese automaker plans to launch a new electric vehicle in North America that will be priced below $30,000, Nikkei reported on Tuesday.

Honda Motor Co., a Japanese automotive giant, is poised to make a significant push into the North American electric vehicle (EV) market with a strategic focus on affordability. According to a report in the Nikkei newspaper, Honda plans to introduce a compact EV priced below $30,000 as early as 2026.

The automaker will produce the low-cost model locally, the Nikkei newspaper reported, adding it will roll it out as part of its upcoming ‘Honda 0 Series’ global EV lineup

TOKYO (Reuters) -Japan's Honda Motor plans to launch a small electric vehicle priced below $30,000 in North America by as early as 2026, the Nikkei newspaper said on Tuesday, as it plays catch-up in the battery-powered car market.

After a strong sales year in the US, Honda is aiming for a bigger share in its most important market, which accounts for roughly a third of the Japanese automaker’s sales. After a slow start, Honda is looking to catch up in the EV market.

The affordable Honda EV, which could go on sale by 2026, may be produced in the Ohio factory, avoiding potential tariffs