Honda Motor Co. is planning to build a new electric vehicle factory in Canada as part of efforts to strengthen its production capacity in North America amid intensifying competition, sources familiar with the matter said Tuesday.
It will be Honda's second EV plant in North America, a major market for battery-driven cars, as the Japanese automaker is currently retooling its existing factory in Ohio in the United States so it can produce all-electric vehicles from 2025.
The Canadian government may consider offering financial support for the project, according to the sources.
The move comes as Honda falls behind its rivals such as Tesla Inc. in launching EVs in North America. The region accounts for about 30 percent of the Japanese company's global car sales.
The maker of the Civic sedan and the Fit compact car is determined to play catch up. The company has said it plans to see its EVs and hydrogen-driven fuel-cell vehicles account for 40 percent of sales in the region by 2030, rising to 100 percent by 2040.
As part of the efforts, the Japanese automaker unveiled its new EV series "Honda 0" at the Consumer Electronic Show in Las Vegas in January.
The vehicles, which Honda hopes will help accelerate the company's shift away from internal combustion engines, will be sold globally from 2026.
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