Honda sees India as key market for future growth alongside US, Japan
Tokyo: Japanese auto giant Honda has identified India as one of its three core markets for future growth, alongside the United States and Japan, according to Takashi Nakajima, President and CEO of Honda Cars India.
Speaking on the sidelines of the Japan Mobility Show, Nakajima said the company’s global leadership has decided to place greater emphasis on India, describing it as one of the most promising and exciting automobile markets in the world.
“Considering the future, India is the most important market for us. Our two-wheeler business is already very large, and now we aim to strengthen our four-wheeler segment by building both brand and volume,” Nakajima said.
He noted that Honda’s approach toward India has changed significantly in recent years.
“Maybe three years ago, we were not so focused on India. But now, we are concentrating much more on this market. For our future business expansion, India is crucial,” he added.
To boost its presence, Honda plans to introduce three new models in India by FY 2026–27, primarily targeting the fast-growing SUV segment. Currently, the company sells one SUV — the Elevate — and two sedans, Amaze and City.
The upcoming models will feature both hybrid and battery-electric powertrains as the company works toward its global goal of achieving carbon neutrality by 2050.
“Gradually, we will increase the share of battery electric and hybrid vehicles,” Nakajima said.
When asked about investments in capacity expansion, Nakajima said Honda is evaluating options.
“We don’t have a complete plan yet, but to increase sales, new factory investments will be necessary,” he noted.
Honda’s Tapukara plant in Rajasthan currently has an annual production capacity of 1.8 lakh units. Regarding the Greater Noida facility, which ceased operations in 2023, Nakajima said the company is exploring various options, including possibly setting up a new plant in southern India, though no final decision has been made.
Honda Cars India shut down its Greater Noida factory — which had a capacity of one lakh units per year — as part of a manufacturing realignment to improve efficiency.
Despite facing stiff competition and a shrinking market share in recent years, Honda Cars India recorded a 20% year-on-year growth in 2024, selling 1,31,871 units, including 68,650 domestic and 63,221 export units.
In 2023, the company had sold 1,10,143 units, with 84,289 units sold domestically.
Nakajima concluded by reaffirming Honda’s long-term commitment to India, saying the company views it as a strategic pillar for future global growth.
