Honda to Boost Production of Affordable Gasoline Cars Amid U.S. Affordability Crisis

Facing high U.S. new-car prices and rising consumer demand for affordable models, Honda plans to increase production of low-cost gasoline-powered vehicles this year. Lance Woelfer, the company’s U.S. sales chief, said Honda will prioritize expanding output of gasoline-powered sedans and SUVs, with electrified models taking a back seat for now. This move also aligns with the U.S. federal government’s recent relaxation of Corporate Average Fuel Economy (CAFE) standards. Currently, the average price of a new vehicle in the U.S. is nearly $50,000, while the base gasoline-powered CR-V starts at around $32,370—about $5,000 less than its hybrid counterpart. Although hybrids offer better fuel efficiency, falling gas prices have diminished their cost advantage. Honda expects its total U.S. sales in 2024 to rise by approximately 4% year-over-year, reaching 1.5 million units.