For Japanese auto giant Honda Motor Company, India is now a key passenger vehicle market after North America and Japan. The management has set up a dedicated project team for India to chart an aggressive growth strategy, including the debut of its first battery electric vehicle in 2027 and a strengthened focus on electric and hybrid technologies.
“Within Honda, we have started out a project team, especially for the Indian market. And the team is working on the strategy for the Indian market…One of the key words in this process is electrification. We are exploring all kinds of potential approaches in the Indian market,” Honda President and CEO Toshihiro Mibe told reporters at the Japan Mobility Show.
This comes amid rapid transformation in the global automotive landscape, where market shares are shifting significantly, driven largely by the growing influence of Chinese OEMs in international markets. Chinese automakers have a limited presence in India due to geopolitical tensions and regulatory restrictions, giving global OEMs a market where competition from Chinese carmakers is minimal.
“The global market has been changing, and the market share of different companies is shifting drastically to a different stage, especially because of Chinese OEMs. They are encroaching on the world market more and more. And Honda, of course, had some impact from this trend in Chinese and Asian markets. For Honda, our world market is in North America, Japan, and India,” Mibe said while noting that India is going to be a priority market for the company.
With a strong network of suppliers in India, Honda is actively evaluating the best strategy for the market. The company has partnered with KPIT Technologies to develop software for its future vehicles, with a particular focus on advancing its software-defined mobility roadmap.
Aggressive Product Plans
Honda has been losing market share in India due to its limited portfolio, currently comprising just three models — the Elevate mid-size SUV and the City and Amaze sedans.
Its absence in the fastest-growing sub-4-meter SUV segment and the delay in launching the Elevate mid-size SUV at a time when demand trend drastically shifted to SUVs from hatchbacks and sedans resulted in Honda losing ground to competitors such as Suzuki, Hyundai, Kia, Toyota, and Tata.
Despite being a pioneer in hybrid technology, Honda has also been lagging getting aggressively into the hybrid space, which has been capitalized Suzuki and Toyota. In the case of electric vehicles, Honda is yet to launch its first model.
However, at the Japan Motor Show 2025, Honda has revealed an aggressive product launch plan for the country with 10 new models planned by the end of this decade, including seven SUVs and multiple powertrains. The carmaker also showcased its 0 α (Alpha) electric SUV concept, which it said will be launched in India in 2027 simultaneously with Japan.
“We are coming up with a very aggressive model launch plan. We are planning to launch 10 or more models by 2030. We are considering a wider range of options — products where we can aim for high volume, as well as premium offerings,” Mibe said. Of the seven SUV models planned, a few will be global products making their debut in India, while the rest will be designed exclusively to suit the preferences of Indian buyers.
Meanwhile, Honda currently has only one model — the Amaze sedan — in the sub-4-meter category, with no SUV offerings in this segment. The company earlier had four models — Brio, Jazz, WR-V, and Amaze — but has since phased out the first three. With the current Goods and Services Tax (GST) structure favoring sub-4-meter vehicles through lower taxation, Honda may revisit its strategy for this segment, potentially with a compact SUV.
However, sources indicated that Honda has yet to finalise plans for a sub-4-meter SUV, with cost optimisation posing a major hurdle.
This SUV segment is currently one of the major growth drivers of India’s passenger vehicle market. Sub-4-meter models such as Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue and Mahindra XUV 3XO are among the top-selling vehicles in the industry. An entry into this segment can give Honda the much-needed volume play and momentum to regain its lost market share.