TOKYO – Honda Motor Co. will launch a micro-sized electric van aimed at Japan’s delivery industry in October, the company announced on Thursday. This move places Honda in an increasingly competitive segment of the market.
Key Features and Market Position
The small electric commercial van will offer a cruising range of 245 km (152 miles) and will be classified as a “kei” vehicle, known for their low power and tax advantages in Japan. The launch comes as Honda, Japan’s second-biggest automaker by volume, plans to introduce an electric kei passenger car next year.
Honda has a strong presence in Japan’s kei car market, with its N-Box model consistently leading sales in the kei passenger vehicle category. Kei vehicles are popular for their affordability and efficiency, making them ideal for businesses and households to deliver agricultural produce, parcels, and other goods in both urban and rural areas.
Market Context and Competition
The announcement follows the delayed launch of a similar small electric van by Toyota Motor Corp, developed in collaboration with Suzuki Motor Corp and Daihatsu, due to a safety test scandal at Daihatsu. Additionally, Mitsubishi Motors Corp reintroduced its small commercial van, the Minicab EV, in December 2023.
Impact and Outlook
Honda’s entry into the electric commercial van market aligns with the growing demand for eco-friendly and efficient delivery vehicles in Japan. As the competition heats up, the success of Honda’s new electric van could further cement its position in the kei vehicle market.
No comment yet, add your voice below!