The Japanese automotive giant Honda is soon going to change the way it develops cars for India. Recently, it has been reported that Honda will be entering a new partnership with Tata Technologies. The main aim of this partnership is to help Honda in stepping into the country’s biggest SUV segments. Now, today we will explain to you the three main reasons why exactly this partnership between Honda and Tata Motors has been formed.
Reason 1 – Honda Wants To Cut Development Costs By 20 Percent
The first and probably the biggest reason is cost. According to reports, Honda is targeting up to 20 percent reduction in vehicle development costs through its partnership with Tata Technologies. Honda so far has relied heavily on its own global development processes, and for most of the time, it has adapted cars originally developed for Japan or other international markets for India.
Now, although this approach has helped Honda maintain its engineering standards, it has also resulted in cars that are seen as expensive compared to their rivals. However, with Tata Technologies developing vehicles specifically for India, Honda can now use the local engineering and supplier ecosystem. This basically means that the development work in India can be carried out at a lower cost.
However, the 20 percent figure refers to the development cost of the vehicle, and not that the final SUV will be 20 percent cheaper. The benefit for customers will most likely come from Honda having more room to offer a better-equipped SUV at a competitive price. This will be particularly important for the upcoming sub-4-metre SUV because it will enter a segment where price and features play a major role. Honda itself has admitted that its products in India have not always offered customers sufficient value for money.
Reason 2 – Honda Wants To Develop Cars In Half The Time
The second major reason is speed. It has been reported that Honda currently takes around five years to develop a vehicle and wants to cut this development time by half through the new partnership. This means that the company is targeting a development cycle of around two and a half years. The reduction in the time of development is very important because the Indian car market is changing very quickly.
A lot of features that were once limited to expensive cars are now available in much more affordable models. Buyers are also demanding larger screens, connected technology, ADAS, better interiors and more powertrain options. So, taking around five years to develop a new car can make it difficult for an automaker to keep up with these changes.
As a result of this, Honda aims to develop cars closer to the Indian market using Tata Technologies’ local engineering capabilities. Basically, Honda wants to reduce the time required to bring new products to showrooms. This could also help Honda in responding faster when customer preferences change, instead of waiting years for a completely new product.
Currently, Honda is already very late when it comes to a number of important SUV segments. So, reducing development time will be very important for its upcoming compact SUV and the larger model that will follow it.
Reason 3 – Tata Technologies Has Access To A Large Local Supplier Network
The third reason is the most important reason why Honda chose Tata Technologies specifically. Tata Technologies has access to a broad network of Indian suppliers and also understands the preferences and spending patterns of Indian car buyers. And, as we all know, a modern car uses thousands of components.
So, having access to local suppliers can make a major difference to the cost and speed of development. Honda, instead of relying heavily on established global suppliers, can now make use of Indian companies to develop and source parts for its upcoming SUVs. According to reports, this was also an area where Honda’s Japanese and Indian teams had differing views.
The Japanese side reportedly wanted to continue using established suppliers to maintain quality and consistency. Meanwhile, the India team wanted to use more local suppliers to reduce costs and speed up development. Honda, however, has denied that there was a disagreement between the two teams and said product development involves close collaboration.
First SUV Will Rival Brezza And Nexon
The first vehicle under this partnership will be a sub-4-metre SUV, which is expected to launch in 2028. This will be a major addition to Honda’s India portfolio because the company currently has very little presence in this very important SUV segment. The upcoming Honda SUV is expected to rival the Maruti Suzuki Brezza, Tata Nexon, Hyundai Venue, Kia Sonet and Mahindra XUV 3XO.
Currently, the technical details have not yet been revealed. However, the focus will be on developing a vehicle specifically for Indian customers. Honda will also introduce a second SUV in the larger mid-size category. This model is expected to compete with the Hyundai Creta, Kia Seltos, Maruti Suzuki Grand Vitara and Toyota Hyryder.
Honda Is Taking A Completely Different Approach
The Tata Technologies partnership represents a major change in Honda’s India strategy. The company has seen its market share fall to around 1.3 percent from a peak of about 7.3 percent more than a decade ago. Also, its portfolio has become much smaller. At the same time, Tata Motors and Mahindra have gained customers with affordable and feature-packed SUVs.
Honda President Toshihiro Mibe has already described India as a key focus market and said that the company needs to rebuild its business on an entirely different footing. As per Mibe, the new approach is not simply about developing two new SUVs. It is about making Honda’s India business more local, faster and more cost-effective.
Honda has launched the new Elevate facelift in India at an ex-showroom starting price of Rs 11.80 lakh. Five trims are available- SV, V, VX, ZX, ZX+. The last one is a new addition to the lineup. Honda hasn’t revealed its price yet. Pre-bookings are already underway.
This is the first major update to the mid-size SUV since its introduction in 2023. India is the first market to get the updated SUV. The facelift gets a revised exterior styling, more features inside and absolutely no change in its engine.
Design: What Has Changed?
On the new Elevate, most of the styling changes are concentrated at the front end. It gets a redesigned grille section, a new bumper, and refreshed lighting, including new LED DRLs. Minor changes can also be seen in the LED headlamps.
The side view remains familiar. The proportions are unchanged as well. That said, a new set of alloy wheels pumps fresh appeal into the side design.
At the rear, the SUV gets revised LED tail lamps and a slightly tweaked bumper. These design changes differentiate the new model from the pre-facelift one and give it a fresher appearance. More importantly, these bring it closer to Honda’s latest global styling direction. The intent has been to make the design bolder, and looks like Honda has successfully done it!
10 exterior colour options are available, including three dual-tone shades. You can also choose from two cabin colour schemes.
Interior And Features
The Elevate has always had a reputation of keeping things simple on the equipment front. This feature gap widened lately with the influx of models like the second-generation Kia Seltos. The facelift tries to address this by offering a few features which were earlier offered as dealer-level accessories.
The ambient lighting is a good example. It now comes integrated into various places inside the cabin. The overall fit, finish and material quality inside have improved significantly. The Elevate now feels more premium than before. The colour scheme is another big difference. The pre-facelift used to have a tan-themed cabin. The facelift uses lighter, more pleasant colours. Also, there is an all-Black option on offer.
It continues to offer a camera-based ADAS suite with features like adaptive cruise control, lane keep assist, collision mitigation braking and road departure mitigation. You also get an automatic climate control, wireless charger, sunroof, air purification system, type-C ports, capacitive touch rear LED spot lamps, and more. A first in its segment, the new Elevate offers front and rear ventilated seats.
Front seats get power adjustments- 8-way for the driver’s seat and four-way for the co-driver’s seat. The car also has front and rear parking sensors and sees the addition of a 360-degree camera. It has disc brakes for all wheels and comes with an electronic parking brake.
Engine Specifications
The new Elevate continues with the same engine as the pre-facelift model- a 1.5-litre naturally aspirated petrol, known for its smoothness and refinement levels. The Honda City also uses the same engine. It makes 121PS and 145Nm on the SUV. Honda says the NVH levels have improved further on the new model. Two gearbox options are offered- manual and CVT.
Previously, there were reports about Honda considering a new, more localised strong hybrid powertrain for the new Elevate. These have now been proved to be mere rumours.
The New Elevate Faces A Stronger Set Of Rivals
The updated Elevate enters India’s fiercely competitive mid-size SUV segment. This space now has strong players like the new Kia Seltos, Tata Sierra, and Maruti Suzuki Victoris. Although it is awaiting a full model change, the Hyundai Creta is still the king of this segment. Other rivals are Volkswagen Taigun, Skoda Kushaq, MG Astor, Maruti Suzuki Grand Vitara, Toyota Hyryder, Renault Duster and Nissan Tekton.
On the product level, most of these vehicles are well-packaged and sharply priced. This is primarily because the buyers in this segment are mostly particular about having premium features in their vehicles. Safety is another major concern.
Most manufacturers follow a multi-powertrain approach in this segment. Honda, however, is an exception on this front, and comes with just the 1.5-litre naturally aspirated petrol engine. That said, it stands fairly competitive against most rivals.
The Elevate nameplate has been a fairly big success for Honda. According to the carmaker’s claims, over 162000 units of it have been sold in domestic and export markets so far. The new model will add to these numbers.