Honda is finally changing the way it develops cars for India. After years of struggling with a limited product portfolio and losing market share to Maruti Suzuki, Hyundai, Tata Motors and Mahindra, the Japanese automaker is said to have joined hands with Tata Technologies to develop a new generation of India-focused vehicles.
And two SUVs could be at the centre of Honda’s comeback
According to , Tata Technologies will develop vehicles specifically for the Indian market under the new partnership. Honda is targeting up to 20 percent cost reduction and wants to cut vehicle development time by half, from around five years currently.
The first vehicle under the partnership will be a sub-4-metre SUV, expected to arrive in 2028. This will put Honda directly into one of India’s biggest SUV segments, taking on the likes of the Maruti Suzuki Brezza, Tata Nexon, Hyundai Venue, Kia Sonet and Mahindra XUV 3XO. A second, larger SUV will follow, targeting the mid-size segment currently dominated by models such as the Hyundai Creta, Kia Seltos, Maruti Grand Vitara and Toyota Hyryder.
Honda Finally Goes After The Volume Segments
This is a major change in strategy for Honda. The company currently has a relatively small India portfolio, with the Amaze, City and Elevate forming the core of its passenger vehicle business. Honda’s market share has fallen to around 1.3 percent, compared with a peak of about 7.3 percent more than a decade ago.
More importantly, Honda has been missing from some of India’s fastest-growing segments. The new sub-4-metre SUV will address that gap. While technical details are still under wraps, Tata Technologies’ involvement is expected to help Honda make the vehicle more affordable and better suited to Indian requirements.
The emphasis will be on localisation as well. Tata Technologies has access to a large network of Indian suppliers, which is one of the reasons Honda selected the company. Honda will continue to control critical areas such as technology, connectivity, driver assistance systems and overall quality. That could potentially result in a Honda SUV that is priced much more aggressively than some of its earlier products.
Then Comes The Creta Rival
The second SUV could be even more important. Honda has confirmed that it plans to introduce a vehicle in the larger mid-size category from 2028 onwards. This model is expected to sit in the heart of the Creta-Seltos segment, giving Honda a much-needed rival to India’s most popular mid-size SUVs.
It is likely to be offered with powertrain options suited to the Indian market, although Honda has not yet revealed specifications. Given the company’s renewed focus on hybrids, electrification and cost efficiency, multiple powertrain possibilities cannot be ruled out.
The two SUVs could also share technology and components, allowing Honda to achieve economies of scale. This is precisely where the Tata Technologies partnership becomes important.
A Completely Different Honda
Honda’s India strategy has historically relied heavily on independently developed global products adapted for the local market. That approach has often resulted in cars that were technically impressive but expensive compared with increasingly feature-packed rivals.
Recently, Honda announced that it was tying up with Renault for a 1.2 liter turbo petrol engine for use in future models. We anticipate that the new SUVs from Honda developed jointly with Tata Technologies would use this new Renault turbo petrol engine.
Honda now admits it needs to change. President Toshihiro Mibe has called India a “key focus” and said the company needs to rebuild its business on an entirely different footing. Honda plans India-specific strategic models from 2028, specifically targeting the high-volume sub-4-metre and mid-size segments.
If Tata Technologies can help Honda deliver these SUVs faster, cheaper and with the features Indian buyers expect, they could become the foundation of Honda’s long-awaited India comeback. The Brezza rival will bring Honda back into the mass-market compact SUV battle. The Creta rival could take the fight much further.