Honda risks big fines if the e:NY1 stumbles

MALSBURY, England -- Honda says its new e:NY1 small electric SUV must account for a fifth of the automaker's overall sales in the U.K. -- its largest European market -- next year. If Honda fails, it faces fines under the country's mandated electric vehicle sales target.

"This is one of the most important product launches we have had in many years," Honda's head of product and business planning in the U.K., Andrew Winfield, said.

Honda's current lineup in Europe is mostly hybrids. Its only other full-electric model, the premium-priced Honda e city car, has not been a strong seller.

Honda needs to accelerate its EV transition to comply to with the U.K.'s zero-emission vehicle (ZEV) mandate, which requires automakers to sell a rising percentage of EVs, starting in 2024 at 22 percent of their total volume, rising to 80 percent by 2030. Through nine months, EVs accounted for roughly 1 percent of Honda's U.K. sales, according to market researcher Dataforce.

The e:NY1 will also play a key role in reducing Honda's average CO2 figure in the European Union when the industrywide figure moves to 93 g/km in 2025 from 118 g/km now based on WLTP standards (95 g/km under the old NEDC cycle). Honda's fleet CO2 figure was 118 g/km after nine months, according to Dataforce.

Honda in the U.K. says it wants to hit the target, rather than buy credits from other automakers or pay fines, and is pinning its hopes on the electric small SUV.

The e:NY1 looks very similar to the automaker's HR-V small hybrid SUV but is imported from China rather than Japan and shares only the doors with its combustion engine-powered stablemate, Honda said.

The electric car is slightly longer than the HRV (4387 mm vs. 4340 mm) and will compete against other electric small SUVs including the Hyundai Kona, MG ZS, Opel/Vauxhall Mokka-e and Peugeot e-2008.

Honda says the car is big enough to appeal to customers looking at the next size above, but its high starting price of 44,995 pounds in the U.K. and 47,590 euros in Germany brings not just compact SUV competition into focus but also midsize SUVs including the Tesla Model Y, which at 44,890 euros undercuts the e:NY1 by 105 euros even though it is 363 mm (14.3 inches) longer.

Honda claims its customers are loyal enough to stick with the Japanese brand when making the EV switch, despite not having the price advantage.

"For people who are new to EV, and in particular Honda-likers, it's less about price and more about brand," Winfield said.

The e:NY1 is equipped with the single choice of a 69-kilowatt-hour battery pack to give a quoted range of 412 km (256 miles).

The pack size is competitive with the Hyundai Kona EV, whose largest battery size is smaller at 65 kWh and has a higher price of 53,590 euros in Germany, but the Kona has a much longer quoted range at 517 km.

The front-wheel-drive Honda has a 204-hp electric motor and can accelerate to 100 kph (62 mph) in 7.7 seconds.

No all-wheel-drive option is available.

Direct current fast charging is rated at 100 kilowatts, comparable to the Kona at 102 kW. However, unlike Hyundai, Honda doesn't supply as standard a heat pump, which can improve range in cold weather.

The Honda is sold as both the e:NS1 and e:NP1 in China depending on which joint venture partner builds it, but costs much less at the equivalent of 26,000 euros for the same specification.

Honda said the Chinese car needed an expensive overhaul to be brought up to European standards, including improved braking and higher crash safety. The European Union and the U.K. also impose 10 percent import tariffs.

The small SUV has a giant 15-inch screen positioned in portrait mode that dominates the dashboard, something is often seen in vehicles sold in China.

The screen is split permanently into three with the lower third focused on climate controls and the top third devoted to mapping. This is the case whether the car is using its native system or is mirrored to the driver's mobile phone.

Equipment in the base Elegance model includes keyless entry, retractable mirrors, wireless phone charger and electrically operated driver's seat, while the Advance model adds a panoramic sunroof, power tailgate and surround-view cameras.

Honda in the U.K. expects the 47,195 pound Advance model to account for 60 percent of sales.

The addition of the e:NY1 brings Honda's SUV range to four in Europe including the small HR-V, new ZR-V compact hybrid SUV, and new-generation CR-V midsize hybrid and plug-in hybrid.

Three of the four SUVs are imported from China, the exception is the  HR-V.

The e:NY1 is already available in Nordic markets, with wider European deliveries starting in January.