Honda is becoming small with the first mass-produced all-electric car

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By Maki Shiraki

UTSUNOMIYA, Japan (Reuters) – While many automakers are betting on sedans and SUVs to transfer them to electric cars (EVs), Honda Motor Co Ltd of Japan says smaller is larger for its first fully battery-powered car produced in series.

The Honda e, launched in Europe before this month, is a compact style designed just for driving in the city. This contrasts with Tesla Inc, 0 whose Model 3 sedan dominates the battery electric vehicle market, and others such as Audi AG and Hyundai Motor Co, which have focused on long-range SUVs.

High battery prices have kept electric cars at the most sensitive end of the automotive market, and many automakers are featuring larger and more flexible models, some of which can reach up to 570 kilometers on a single charge.

The Honda e, however, has a battery capacity similar to that of the Model 3, traveling 280 kilometers consistent with the charge.

“Most electric cars use high-capacity batteries, however, much of that capacity is not used while driving in the city,” Tomofumi Ichinose, Honda’s lead engineer, told reporters this week.

“We think larger cars are suitable for urban areas and we think smaller cars are a better choice for cities.

With a retro, ultra-compact design evoking Honda’s classic N360 and N600 models from the 1960s, the two-door Honda e is intended as an upmarket city car, whose price tag of around 33,000 euros ($39,000) is higher than Renault’s Zoe ZE50, which is roomier and has a longer driving range.

Ichinose said Honda engineers had prioritized accurate and accurate handling to allow for simple U-turns on narrow streets. The side mirrors have been replaced by internal screens to prevent bumps and scratches when parking.

The model will be sold in Europe and Japan, where it will go on sale at the end of October. Honda expects annual sales of around 10,000 in Europe and 1,000 at home, where it will also introduce style into its fleet of carpools.

The automaker said it has no plans to market the in North America or China, its largest markets where SUVs dominate.

(1 USD – 0.8468 euros)

(This story corrects headline, first paragraph to clarify new model is Honda’s first mass-produced all-electric car.)

(Report through Maki Shiraki; written through Naomi Tajitsu; edited through MarkPotter)

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