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.

Fast forward to today and it appears the ID.7 will become forbidden fruit. We’ve reached out for comment, but Volkswagen told Automotive News they no longer plan to offer the electric liftback in North America. A spokesperson blamed this on the “challenging EV climate,” which has seen slower adoption than many automakers anticipated.

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 (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.

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