Honda suddenly developed a low-cost electric car in China

Honda has officially entered the electric car war in China with the launch of the e:N Series product range, demonstrating its ambitions in the world’s largest electric vehicle market.

Earlier in April, the Japanese automaker launched three concept models in this product range, and confirmed that it would add more commercial models if sales and production output were positive.

The Chinese electric vehicle market is rapidly dividing into two segments: low-cost electric vehicles and high-end electric vehicles. Honda’s new electric models will have a starting price of about 26,000 USD, cheaper than electric cars from Tesla. This shows that the Japanese automaker’s goal is to target the middle class in China.

“China is an advanced country in the field of electric vehicles. This will be the place where Honda’s electric vehicles beat the competition,” said Katsushi Inoue, Honda Operations Manager here.

Honda has partnered with Sony Corporation and General Motors in the field of electric vehicles, to achieve its goal of becoming an all-electric car company by 2050. The e:N Series product range is testament to that ambition.

These will be the first electric vehicles to carry the Japanese automaker’s signature H logo in the Chinese market. Honda plans to introduce 10 models over the next five years, using its newly developed EV-specific platform.

The first model in this product range is the e:NS1, launched by the Dongfeng Honda joint venture. Another joint venture, GAC Honda Automobile, will also start taking orders for the e:NP1 model this month, which is quite similar to the e:NS1 model.

e:NS1 will be a B-segment model with a starting price of 175,000 yuan (equivalent to 26,000 USD). The vehicle has a range of up to 510 km on a single charge. The battery system is manufactured by the Chinese manufacturer CATL, which is the world’s largest car battery manufacturer today. Honda has also invested in this company to develop battery systems for its models.

Cabin e: NS1 is equipped with a 15.1-inch touch screen, voice control. The car also has an additional function to detect driver distraction or drowsiness.

For now, models in the e:N Series range will be produced at its existing plants, but Honda also has plans to build new factories specifically for electric vehicles, which are expected to begin soon. operation in 2024. The company also plans to export electric vehicles to other markets, first to the European market in 2023.

With the launch of the e:N Series product range, Honda plans to ramp up online sales, allowing customers to complete the entire process, from ordering to delivery, via the internet. Traditional sales are also enhanced using a network of joint venture partners with locations in shopping malls and dedicated areas at existing dealerships. Honda aims to sell 3,000 e:NS1 units per month.

Honda sold 1.56 million new cars in China in 2021, down 4% year-on-year in 2020. Vehicles with internal combustion engines and hybrids accounted for the majority, while electric vehicles only reached around 10,000. pcs. Honda is aiming to sell 800,000 electric vehicles here by 2030. Achieving this goal will depend on the success of the e:N Series product range.

As electric vehicles become popular in China, the market is splitting into two distinct segments. In big cities, customers prefer luxury electric cars that cost more than 300,000 yuan (equivalent to 44,000 USD). Tesla and local rival NIO are among the leaders in this segment.

Meanwhile, low-cost models like the Hongguang MINI EV, which costs around 30,000 yuan (equivalent to 4,400 USD) and built by SAIC-GM-Wuling Automobile, which are gaining popularity in smaller cities.

In order to optimize the success of the e:N Series product range, Honda is planning to bring the average selling price of the models in this product range to around 200,000 yuan (equivalent to about 200,000 yuan). 29,000 USD).

“All the craftsmanship Honda has acquired over the past 70 years is applied to the e:N Series product range, something new automakers do not have,” adds Katsushi Inoue.

But Honda isn’t the only traditional automaker targeting the Chinese electric vehicle market. Volkswagen and Toyota are also investing here, making the competition in the electric car war in the country of billions increasingly fierce.