Honda Motor Co.'s initiative to lease the Fit EV hatchback to retail customers is widely expected to trigger demand for fuel-cell cars and move more and more EVs off showrooms.

The auto giant will start leasing the Fit EV car on 20th of July, for $389 per month, in Oregon and California.

The Honda Fit EV hatchback is more efficient than it nearest competitors. The Fit runs 82 miles per charge and 118 miles-a-gallon, the ratings that top Nissan's Leaf and Ford's Focus EV.

Honda is also offering its new environment-friendly electric vehicle with an unusual option - crash insurance without any deductible, which is expected to boost demand for the vehicle even higher.

Rebecca Lindland, an analyst at IHS Automotive, praised the unusual option, saying, "It is a really interesting marketing tool."

It is not going to be the first time when Honda will lease a vehicle to retail customers. In 2008, the auto company started leasing the Clarity sedan in Los Angeles.

New, stricter emissions rules are pushing auto makers to offer battery-electric models. But sales of the electric vehicles have so far remained low, particularly higher price and limited range compared with gasoline-powered vehicles. Previous electric vehicles require owners to install charging stations at their homes that cost in the range of $1,500 to $2,500, depending on the size and location of the home.