Honda Bets On $18K N-ONE e To Spark Japan’s EV Transition And Race Ahead Of Nissan

Honda has introduced its first lightweight electric car for Japan, the N-ONE e, which goes on sale Friday for 2.7 million yen (about $18,300). 

The little kei car can run up to 295 kilometers on a single charge, giving it more range than Nissan’s Sakura, which is currently Japan’s most popular EV at 180 kilometers, according to a Bloomberg report. 

Kei cars account for about a third of Japan’s auto market, and Honda already dominates the segment with its gasoline-powered N-Box, the country’s top-selling car.

Honda is betting the N-ONE e can help accelerate Japan’s slow shift toward electric mobility. EVs are projected to make up just 3.4% of new car sales in 2025, far behind adoption rates in the U.S., Europe, and China. 

“When it comes to promoting EVs, our way of thinking is that it should start with the cars most familiar to people,” said Hideo Kawasaka, who oversees Honda’s Japan operations.

The launch comes as rivals also jostle for position in the kei EV segment. Suzuki Motor and Toyota Motor are planning a joint kei EV later this year, while China’s BYD is preparing to introduce one in 2025, the Financial Times reported.

For Nissan, Honda’s push adds pressure as the Yokohama-based automaker struggles with its deepest crisis in a quarter century. 

Nissan is cutting model development times, accelerating launches, and revamping its lineup, including the fourth-generation Roox kei car due later this year, after forecasting operating losses of 180 billion yen for April–September and announcing plans to cut 20,000 jobs and shutter seven factories.

On Stocktwits, retail sentiment was ‘bearish’ for Honda and ‘bullish’ for Nissan, both amid ‘normal’ message volume.

While Honda’s U.S.-listed stock has risen 19% so far in 2025, Nissan’s U.S.-listed shares have declined nearly 20% over the same period.

($1=147.64 yen)

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