Honda Motor intends to introduce a battery-electric version of its N-Box car around the 2027 financial year, according to a report by Nikkei Asia.

The N-Box, a small “kei” category minicar, has been described as top-selling new vehicle across all segments in Japan.

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First launched in 2011, the model recorded sales of more than 200,000 units last year, ahead of the Toyota Corolla, and has held the country’s overall sales lead for three consecutive years.

Priced from about Y1.7m ($11,000), total sales of the model have climbed to close to three million units.

Details of the electric N-Box, including price and driving range, have not yet been settled.

Honda is expected to keep the petrol-powered N-Box in its line-up alongside the new EV.

Japan’s kei minicars are subject to strict size limits: no more than 1.48m in width, 3.4m in length and 2m in height.

Electric minicars in this category receive the same preferential tax treatment as petrol kei cars, in addition to purchase subsidies, resulting in lower ownership costs than for standard-sized models.

Although battery-electric vehicles represent only about 2% of new car registrations in Japan, making it one of the weakest adopters among developed markets, kei-class EVs have gained traction.

The Nissan Sakura and Mitsubishi eK X together accounted for more than 40% of the country’s EV sales last year.

Their relatively short driving ranges align with typical usage patterns for minicars, which are mainly deployed for urban journeys.

Competition in the electric kei segment is expected to increase ahead of the N-Box EV’s arrival.

BYD, the China-based manufacturer, plans to release a model positioned against the N-Box’s spacious cabin layout next summer, roughly a year before Honda’s launch window.

Suzuki Motor is also preparing to launch an electric kei car in or after the 2026 financial year.

Last month, it was reported that Honda plans to introduce a hybrid variant of a full-size sport utility vehicle (SUV) for the North American market, marking its entry into the segment.

Honda will equip the forthcoming hybrid electric vehicle (HEV) model with a newly developed six-cylinder engine aimed at improving hybrid fuel economy by 30% compared with petrol-only versions, alongside reducing CO2 emissions.

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