At its global financial press conference in Japan, Honda announced a new product development approach for India today. The new process will see the Japanese auto giant move away from its traditional model of developing global standard cars and then selling them in different regions, to now specifically developing vehicles for the Indian market which ‘pursue an optimal balance of performance and price’.
- Honda to focus on compact and midsize categories
- Will be tailored specifically for Indian needs and preferences
- Plans to launch 10 new models by 2030
“‘The global standard approach may have been somewhat excessive,” said Toshihiro Mibe, director, president and representative executive officer at Honda. Acknowledging that the company has had “an insufficient number of competitive models in each segment”, Mibe said Honda is now very open to local collaborations and will “utilize local resources including external resources to develop and introduce locally tailored models as quickly as possible.” While the company did not specify the exact number of models planned for India, it had earlier announced 10 new cars for the market by 2030.
Two segments are its main target; the sub-4-meter space and the mid-size category. While Honda did not state what body type these vehicles would be, it showcased two SUV silhouettes and said that the first of these models would arrive in 2028.
Synergize with motorcycle business
Mibe also said that the company’s motorcycle business in India will be its key strength. In FY2026, Honda’s annual motorcycle sales stood at 5.8 million units, and Mibe said it also has the largest units in operation (UIO). It thus plans to leverage its robust supply chain to the advantage of the car business. Mibe also sees the large UIO as a potential customer base and says he would like to see the brand's two-wheeler customers buy its cars, given that its motorcycle range has many models priced close to entry-level automobiles.
The announcements today certainly bring hope for its India operations. Honda currently stands with a market share of less than 2 percent and a product portfolio of just three models. The locally tailored models should give Honda India a shot in the arm, although it will have to hone this strategy further still, given that the Honda Elevate – a product conceived with a similar approach – is yet to find significant traction in India. Honda seems to be intent on the Indian market though, as it also announced that it has "positioned North America, Japan and India as priority markets for future growth" and plans to further allocate resources to these markets.
Uday Singh
Dhruv Dhaka
Glenn Noronha
