Honda Launches First Electric Kei Car in Japan: A Step Towards Sustainable Mobility

Honda Motor Co. has launched its first electric kei car in Japan. The company operates through four business segments: motorcycle, automobile, financial services, and power products and other business. The kei car, which is a small vehicle with limited power, is part of Honda's efforts to increase its electric vehicle offerings and reduce its carbon footprint. The launch marks a significant step towards Honda's goal of electrifying its entire lineup by the mid-2020s.

Honda Motor Co. has made a significant move in the Japanese market by debuting its first electric kei car, the N-ONE e:. This new model is designed to cater to the Japanese market's preference for small, fuel-efficient vehicles, known as kei cars, which account for approximately a third of the country's automobile market Honda Debuts $18,300 Electric Kei Car in Japan to Take on Nissan^[1].

The N-ONE e: will be available for ¥2.7 million ($18,300) starting from September 12, 2025. It boasts a range of 295 kilometers (183 miles) on a single charge, outperforming Nissan Motor Co.'s Sakura, the current market leader in the EV kei car segment Honda Debuts $18,300 Electric Kei Car in Japan to Take on Nissan^[1]. This initiative underscores Honda's strategy to leverage familiar vehicle types to promote electric vehicles (EVs) in Japan, where EV adoption remains relatively low, with projections indicating that EVs will account for just 3.4% of new vehicle sales in 2025 Honda Debuts $18,300 Electric Kei Car in Japan to Take on Nissan^[1].

Honda's foray into kei EVs is part of its broader strategy to expand its electric vehicle offerings and reduce its carbon footprint. The company aims to electrify its entire lineup by the mid-2020s, positioning itself as a key player in the global EV market. This launch coincides with similar efforts by other automakers, including Suzuki Motor Corp., Toyota Motor Corp., and China's BYD Co., which plans to introduce a battery-powered kei car in Japan next year Honda Debuts $18,300 Electric Kei Car in Japan to Take on Nissan^[1].

In addition to the N-ONE e:, Honda is also involved in a strategic acquisition that could further bolster its position in the automotive parts market. The company's subsidiary, Yutaka Giken, is the target of a proposed acquisition by Samvardhana Motherson International Limited (SAMIL) through its wholly-owned subsidiary, Motherson Global Investments BV (MGI BV). This deal, valued at around USD184 million, would see MGI BV acquire an 81% stake in Yutaka Giken, a Tokyo Stock Exchange-listed subsidiary of Honda Motor SAM, Mori Hamada guide SAMIL’s bid for Honda Motor unit^[2].

The acquisition of Yutaka Giken is part of a multi-jurisdictional deal that involves nine manufacturing locations across Japan, China, the US, Thailand, Brazil, India, Indonesia, Mexico, and the Philippines. The deal is subject to merger control approvals in multiple jurisdictions and a tender offer process. This strategic move highlights Honda's commitment to expanding its global footprint and strengthening its brand in the EV market.

As Honda continues to invest in electric vehicles and strategic acquisitions, it positions itself as a leader in the transition towards cleaner transportation, both in Japan and globally. The launch of the N-ONE e: and the acquisition of Yutaka Giken are significant steps in achieving Honda's long-term goals of sustainability and market dominance.