The Tokyo-headquartered carmaker, which operates in India through a wholly owned subsidiary, plans to deploy more SUVs in the country as the segment continues to see robust sales across price points.
“Our top management has decided to focus on India as one of the three key markets for Honda’s future growth, alongside the US and Japan,” Nakajima told reporters here in an interaction on the sidelines of the Japan Mobility Show.
Nakajima noted that India is one of the most promising and exciting markets in the world today.
“Looking ahead, India is the key market…Our two-wheeler business is already very large in the country and we aim to follow a strong growth trajectory for our four-wheeler business by building both brand and volume,” he stated.
Nakajima said the company’s attitude towards India has undergone a change in recent years. “Maybe three years ago we were not like this. But now we are concentrating on focusing a lot on India. Considering the future business expansion, India is the most important,” he said. Elaborating on the focus areas for the company to grow car sales in India, Nakajima said the company is looking to expand its model range in the country.
Honda plans to introduce three new models in India by fiscal year 2026-2027 as it looks to tap the growth opportunities in the booming SUV segment.
The company currently sells only one SUV model – Elevate – in the market, while the other two products, Amaze and City, are sedans.
The new models are said to include both hybrid and battery-electric powertrains.
Nakajima said the company will focus on combustion engine models as well as electric and hybrid powertrains in the future.
“We will gradually increase the share of battery-electric vehicles and battery vehicles as we strive for carbon neutrality by 2050,” he added.
When asked if the company is preparing new investments to increase production capacity to meet future demand, Nakajima said: “We don’t have a complete plan yet, but to increase sales, of course, factories need to be needed and investments also need to be made.”
The company’s Tapukara-based manufacturing facility in Rajasthan can roll out 1.8 lakh units per year.
When asked if the company’s Greater Noida factory could also see some kind of revival as part of its expansion plans, Nakajima said: “We are now exploring which way is best in view of future expansion, but there are many options. We can also consider developing a new factory in the South, for example. This is just an option. We have not decided anything yet.”
In 2023, Honda Cars India formally announced the closure of manufacturing operations at its Greater Noida plant in Uttar Pradesh. The factory had an installed production capacity of one lakh units per annum.
The automaker had cited the decision to halt production at the plant, which was taken in 1997, as part of its realignment of production operations aimed at improving business efficiency.
Honda has seen its market share decline significantly in recent years, amid increased competition in the Indian market.
Honda Cars India registered a cumulative growth of 20 percent in total sales with 1,31,871 units sold in the calendar year 2024.
The company’s domestic sales last year were 68,650 units and exports were 63,221 units.
The company sold a total of 1,10,143 units in 2023, with a domestic volume of 84,289 units.
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