Japanese auto major Honda considers India a key market for its future growth alongside the US and Japan, according to Honda Cars India President and CEO Takashi Nakajima.
The Tokyo-headquartered automaker, which operates in India through a wholly owned subsidiary, plans to drive in more SUVs in the country, as the segment continues to see robust sales across varied price points.
"Our top management has decided to focus on India among 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 India is one of the most promising and exciting markets in the world currently.
"Considering the future, India is the most important market… Our two-wheeler business is already very big in the country, and we are aiming to follow a strong growth direction for our four-wheeler business by building both brand and volume," he stated.
Nakajima said the company's stance regarding India has undergone a change since the last couple of years.
"Maybe three years ago, we were not like that. But now we are focussing on concentrating much on India. Considering the future business expansion, India is the most important," he stated.
Elaborating on the focus areas for the company to grow car sales in India, Nakajima said the company is looking to expand its model lineup in the country.
Honda plans to introduce three new models by the 2026-27 fiscal year in India as it looks to tap growth opportunities in the robustly growing SUV segment.
The company currently sells just one SUV model -- Elevate -- in the market, while its other two products, Amaze and City, are sedans.
The new models would encompass both hybrid and battery electric powertrains.
Nakajima said the company would focus on both internal combustion engine-powered models as well as electric and hybrid powertrains going ahead "Gradually, we will increase the share of battery electric vehicles and battery vehicles as we aim for carbon neutrality by 2050," he added.
When asked if the company is lining up fresh investments for enhancing production capacity to meet future demand, Nakajima said: "We do not have a complete plan yet, but of course, in order to increase sales, factories should be necessary and of course some investment needs to be done." 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 plant can also see some kind of revival as part of expansion plans, Nakajima said: "We are now investigating which way is best considering future expansion, but there are many options. We can also consider developing a new plant 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 facility in Uttar Pradesh. The plant had an installed production capacity of one lakh units per annum.
The automaker had cited the decision to cease production at the plant, which came up in 1997, as part of the realignment of manufacturing operations with the goal of improving business efficiency.
Honda has seen its market share dip considerably over the last few years amidst enhanced competition in the Indian market.
Honda Cars India registered a cumulative growth of 20 per cent in its total sales with 1,31,871 units sold during the calendar year 2024.
Domestic sales of the company stood at 68,650 units and exports at 63,221 units last year.
The company sold a total of 1,10,143 units in 2023, with domestic volume of 84,289 units.
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