Amid declining domestic sales and shrinking market share, Honda Cars India is preparing to introduce a hybrid version of the Elevate, the only sports utility vehicle (SUV) in the carmaker's current product portfolio.
Sources told Moneycontrol that the Elevate hybrid will be launched in India in the second half of the calendar year (CY) 2026.
Honda is targeting the festive season for the introduction of the Elevate hybrid, one of the sources said.
The carmaker currently offers three models -- Amaze sedan, City sedan and Elevate SUV. The City already has a hybrid version, City e:HEV, contributing 12% to the overall sales of the vehicle.
Honda has started preparations at its Tapukara plant (Alwar, Rajasthan) for the Elevate hybrid, and it is likely to be produced on a new line.
The City-maker has seen its domestic volume fall from 91,418 units in FY23 to 86,584 units in FY24 to 65,925 units in FY25, according to data from the industry body Society of Indian Automobile Manufacturers (SIAM).
The decline in volume has resulted in a decrease in market share, from 2.35% in FY23 to 2.05% in FY24, and further to 1.53% in FY25.
| Period | Domestic volume (Honda) | Domestic market share (Honda) |
| FY23 | 91,418 units | 2.35% |
| FY24 | 86,584 units | 2.05% |
| FY25 | 65,925 units | 1.53% |
Despite limited options, the hybrid segment has witnessed a growth in volume and market share, from 41,477 units and 1.1% in FY23 to 90,460 units and 2.1% in FY24 to 1,04,800 units and 2.4% in FY25.
| Period | Domestic volume (hybrids) | Domestic market share (hybrids) |
| FY23 | 41,477 units | 1.1% |
| FY24 | 90,460 units | 2.1% |
| FY25 | 1,04,800 units | 2.4% |
When contacted, a Honda spokesperson said: "The City hybrid contributes to about 12% of overall City sales. There are certain benefits for strong hybrid cars in states like Uttar Pradesh, and the share of hybrids is more in such locations."
"As communicated during earlier occasions, Honda is currently pursuing the development of a new battery electric vehicle (BEV), which will be launched in India in the next fiscal. As a policy, we cannot comment on further information/queries related to future models at this time," the spokesperson added.
The Honda Elevate is positioned in the highly competitive mid-size SUV segment, competing with the likes of the Hyundai Creta, Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder, Kia Seltos, Tata Curvv, Skoda Kushaq, Volkswagen Taigun, and MG Astor.
While the Grand Vitara and the Urban Cruiser Hyryder offer a hybrid option at present, the Creta and the Seltos are likely to get it in the future.
Carmakers like Tata Motors and Mahindra & Mahindra are also exploring hybrid technology to further diversify their passenger vehicle (PV) portfolio.
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