Honda Cars India, during the introduction of their new Elevate model, revealed plans to expand its SUV portfolio in the country to five models. Additionally, the company expressed intentions to utilize India as a base for future export operations.
Honda Cars India, focusing on exports as a crucial strategy for the growth of its internal combustion engine SUVs, is transitioning to become a hub for electric vehicles with its new initiative ‘ACE’. The ACE project, which stands for “Asian Compact Electric,” is anticipated to be operational by 2026. It is expected that 50-70 per cent of the vehicles manufactured in India will be exported to major international markets, including Japan.
Industry insiders mention that a new product, codenamed DG9D, is under discussion. This product, with a projected annual production volume of one lakh units, forms part of nearly four new models planned for the Indian market.
Honda Cars India, while not commenting on future products or business strategies due to confidentiality, had previously announced at the Elevate launch its intention to introduce five SUV models in India and to use the country as a future export hub. The company also revealed plans for its first electric vehicle (EV) based on the Elevate platform, expected within two to three years.
The senior management of Honda Cars India confirmed at the 2023 Japan Mobility Show that the retooling of its Tapukara, Rajasthan plant for EV production is set to begin in 2024. The plant, which currently has spare capacity, could see further investment and capacity expansion to accommodate new model lines and export volumes.
Honda Cars India President and CEO Takuya Tsumura acknowledged the possibility of expanding capacity and did not rule out the use of a second plant in the future based on volume demands. While no specific investment amount for the new EV and future EVs has been announced, Tsumura confirmed the commitment to electrification and associated investments.
The production capacity increase aims to cater not only to domestic sales but also to the exports of the Elevate and the upcoming EV. The Elevate, like the new EV, is expected to be a global model exported to more markets than the City and Amaze.
Emphasizing India’s global role, Toshio Kuwahara, President and CEO of Asian Honda Motor, highlighted the significance of the Elevate SUV in expanding export volumes from India. The global debut of Elevate in India underscores the country’s importance in Honda’s future plans.
Reports indicate that exports from India may double by 2025, and with the ACE project, the share of overseas volumes from India could constitute about 30-40 per cent of total production. The Honda Elevate, set to launch in Japan in Spring 2024 as WR-V, will be manufactured in India, reflecting the country’s manufacturing capabilities and reinforcing Honda’s vision of making India a key export hub. However, details on export volumes remain undisclosed.
