Honda Motor is working on a hybrid car that can be recharged at home and an all-electric vehicle, both for release in about three years, the Nikkei business daily reported.
Honda is also considering building hybrids in the United States, the paper said.
Conventional hybrids are cars that can charge their own batteries, which turn a motor that assists a gasoline-powered engine providing most of the power. Plug-in hybrids, on the other hand, can make short trips using the motor alone, the Nikkei said.
Honda expects its plug-in hybrid to go 60 km (37 miles) or more on a single liter of gas, making it more fuel-efficient than rival Toyota Motor's best-selling hybrid, the Prius, the daily said.
Honda will release its electric car in the United States first, the daily reported.
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