Honda will start selling a battery-powered car in the US and Japan in 2012, the firm announced yesterday.
It will also launch a mid-size plug-in hybrid in the same year as it joins the race to manufacture more environmentally friendly cars.
Chief executive Takanobu Ito told reporters that the firm had no future without making vehicles that emitted less carbon dioxide.
"The next 10 years will be a true test of Honda's survival," he told Bloomberg.
It is the first time the firm, which already makes the Insight and CR-Z hybrids, has set a firm date for launching electric cars.
Honda was one of the first manufacturers to market a petrol-electric hybrid, but the firm had previously favoured hydrogen fuel cells to batteries as the future technology for cars. However, inadequate infrastructure development in that area has led it to revise plans.
Nissan is already taking orders for its Leaf electric car, due to be launched in Japan and the US later this year. Toyota is also planning to launch an electric vehicle model in 2012 after recently forming an alliance with California start-up Tesla Motors.
US fuel-economy rules that phase in after 2015 will accelerate the addition of plug-ins and hybrids to the market, say analysts.
Ito also confirmed Honda would develop a new line of more fuel-efficient transmission options and a new two-wheeler to compete in China's massive electric bicycle market, estimated at more than 20 million units a year.
Among other steps to lower carbon dioxide emissions, Honda plans to launch a new small diesel model in Europe in 2012 as well as revamp its gasoline engine and transmission line-up to improve fuel efficiency of its fleet.
With governments and consumers increasingly seeking to lower fuel consumption, Honda said it would further step up its development of micro-cars, moving production of some 660cc mini-vehicles back to its main Suzuka factory i n Japan in 2012, from licensed manufacturing unit Yachiyo Industry.
"Through mini-vehicle production at Suzuka, we aim to hone manufacturing technologies that will contribute to the reduction of vehicle weight and costs for all future models," Ito said.
Honda also unveiled plans to build a new motorcycle factory in Indonesia in the latter half of 2011, boosting its annual output capacity by 500,000 units to 4 million in the world's third-largest motorcycle market.
Reports claim auto giant has ditched plans for a mini-vehicle factory in order to focus on its growing portfolio of hybrid cars 15 Jul 2010
Andrew Williams casts his eye over the frontrunners in the race to drive hydrogen cars into the mainstream 17 Jun 2010
Number of US clean tech patents granted during the first quarter jumps more than 50 per cent year on year 07 Jun 2010
Toyota, Nissan, GM and BMW to join domestic heavyweights unveiling a record number of green cars at Beijing motor show 22 Apr 2010
Auto giant unveils first all-electric scooter and sets sights on booming Chinese market 13 Apr 2010Reports claim auto giant has ditched plans for a mini-vehicle factory in order to focus on its growing portfolio of hybrid cars 15 Jul 2010
Nissan, Honda, Mitsubishi and Toyota jostle for position in the race to crack electric vehicle market 21 Oct 2009
Slow roll-out of electric vehicles means pricey Tesla Roadster and Mitsubishi i-Miev will be only two cars eligible for new £5,000 grant 26 Feb 2010Toyota, Nissan, GM and BMW to join domestic heavyweights unveiling a record number of green cars at Beijing motor show 22 Apr 2010
Providing recharging systems for electric cars could allow car hire companies to grab a slice of refuelling market currently dominated by petrol stations 11 Sep 2009
Renewable energy industry fears success of incentive scheme has been overstated, fuelling calls for it to be rolled back 03 Sep 2010
Fast Start Finance web site to provide information on industrialised nations' climate funding commitments 03 Sep 2010
Rule change should allow unspent stimulus cash to be reallocated to green energy and transport projects 03 Sep 2010
More news
The feed-in tariff is well-intentioned, argues Trewin Restorick, but is it socially unjust? 02 Sep 2010
Regardless of which brother becomes the next leader of the opposition, environmental issues are set to become a more prominent feature of the political landscape 01 Sep 2010
Lisa Ashford of EcoSecurities makes the case for rivals clubbing together to fund emission reduction projects 31 Aug 2010 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
