TOKYO: 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.

The automaker will produce the low-cost model locally, the Nikkei said, adding it will roll it out as part of its upcoming “Honda 0 Series” EV lineup.

Honda has previously said the series will be launched globally, starting from the North American market. A company spokesperson did not immediately respond to a comment request.

Japan’s second-biggest automaker has been slow to step up sales of battery-powered vehicles, lagging behind U.S., European and Chinese rivals, including Tesla, Volkswagen and BYD.

The company is striving to have battery-powered and fuel-cell vehicles make up all of its new car sales by 2040.

Reuters