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Honda to Boost Output of Cheaper, Gas-Powered Vehicles
Company Cites Demand for Lower-Cost Cars
Honda Motor Co. plans to increase production of cheaper gasoline-fueled vehicles this year, a reflection of lower U.S. emissions standards and a new-car affordability crisis.
The Japanese carmaker’s sales of electrified vehicles will take a back seat to gas-fueled cars and SUVs in response to growing demand for low-cost models,Lance Woelfer, the head of Honda’s U.S. sales operations, said in a media briefing.
“We’re actually going to increase production of more affordable trims this year to make sure we can meet the needs of our customers. This means adjusting our production mix to include more lower-priced, gas-powered models,” he told reporters. “Every manufacturer is talking about affordability being one of the main challenges in the marketplace.”
The move comes as many American car buyersare struggling to affordnew-car prices that average nearly$50,000, and as the auto industry embraces less stringent federal rules on internal combustion engines.
President Donald Trump’s administrationis relaxingCorporate Average Fuel Economy requirements for cars and light trucks that were tightened under former President Joe Biden.
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Hybrids, which typically cost more than gas-only models, made up a large share last year of Honda’s most popular models, including 54% of its best-selling CR-V crossovers, half of Accord midsized sedans and 36% of Civic compacts. But the additional upfront costs for more fuel efficient powertrains could take longer to pay off due to falling prices at the pump. Gasoline prices in many parts of the U.S. have fallen to the lowest levels in at least a year, official data show.
A 2026 base model CR-V powered by gas starts at around $32,370 in the U.S., about $5,000 less than the lowest-priced hybrid version of the vehicle, according toEdmunds.com. A gas-fueled CR-V averages a combined city-highway 30 miles per gallon, while the hybrid’s fuel economy is10 mpg higher.
Woelfer declined to specify how many more gas-powered vehicles the Tokyo-based carmaker plans to sell this year, but said that overall U.S. deliveries for its mainstream Honda and premium Acura brands should grow about 4% to 1.5 million vehicles.
