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 or more on a single liter of gas, making it more fuel-efficient than rival Toyota Motor Corp's best-selling hybrid, the Prius, the daily said.

Honda will release its electric car in the United States first, the daily reported.

The company is considering manufacturing the Honda Insight and two other hybrids in the U.S. markets and plans to expand its lineup of hybrids to five or so by 2013, the Nikkei said.

Honda President Takanobu Ito will announce the company's hybrid and alternative vehicle plans at a news conference on Tuesday, the paper reported.

(Reporting by Siddharth Cavale in Bangalore; Editing by Maju Samuel)