NEW DELHI, May 14: Japanese auto major Honda Motor Co will start introducing models tailored for the Indian market from 2028 and leverage its two-wheeler business to upgrade customers to passenger vehicles as part of rebuilding its automobile business, company Global CEO Toshihiro Mibe said on Thursday.
The company has positioned India along with North America and Japan as priority markets for its future growth strategy and will strategically allocate resources to these markets, Mibe, who is the Director, President and Representative Executive Officer (Global CEO) of Honda Motor Co said in a press briefing in Tokyo.
Honda also plans to increase the annual production capacity of its two-wheelers in India, the largest market for Honda motorcycles business, to about 80 lakh units in
2028 from the current 62.5 lakh units, he added.
For rebuilding the automobile business and ensuring mid-to long-term growth, Honda will also pursue initiatives in Japan, India, and China to fundamentally strengthen its competitiveness.
Specific to India, Mibe said, “Honda will redefine the best specifications that are well-aligned with the characteristics and preferences of customers in India.”
In 2028, the company will begin introducing strategic models tailored to the Indian market in two vehicle categories — category for vehicles under 4 meters in length and the mid-size category, he said.
“Honda will leverage the solid foundation of its motorcycle business in India, which sells nearly 6 million units of motorcycles annually. By steadily capturing demand from customers upgrading from motorcycles to automobiles, Honda will strive to grow its business in India,” Mibe noted.
As a part of its strategy, Honda has established Honda Digital Innovation India, a digital platform company, he added.
In addition, Honda will strive to expand sales through various measures, including the utilisation of its new captive finance company in India, which is scheduled to become operational before the end of the current fiscal year ending March 31, 2027, Mibe said.
On cost reduction, specially for outsourced parts, Honda will improve its cost structure on a global basis by reassessing Honda-specific standards and proactively utilising standardised components, and by incorporating the competitiveness of local businesses in China and India.
He also said Honda will utilise external resources more flexibly and strategically, including the cost competitiveness and speed of local businesses in China and India and industry-standard components.
On two-wheeler capacity expansion, he said in “India, which is the largest market for Honda motorcycle business, Honda plans to expand its annual production capacity from the current 6.25 million units to approximately 8 million units in 2028”.
Honda’s production operations in India will also continue to advance as an export hub for global markets, including Central and South America and ASEAN, Mibe noted. (PTI)
Follow our WhatsApp channel
