Japanese automotive giant Honda is reevaluating its global priorities, and has said that India is one of its three key markets for future growth, placing it alongside the US and Japan.
In an interaction with reporters on the sidelines of the Japan Mobility Show 2025 in Tokyo, Takashi Nakajima, president & CEO of Honda Cars India, said that the global management has decided to focus on India among the three key markets for Honda’s future growth, alongside the US and Japan.
“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 said. To realise this goal, Honda is charting an aggressive product roadmap, and a key focus will be the growing SUV segment – and Honda plans to introduce three new SUVs by FY27.
These models will encompass both hybrid and battery electric powertrains. Nakajima said that the carmaker would focus on a multi-powertrain approach, gradually increasing the share of BEVs to align with its global goal of achieving carbon neutrality by 2050.
Honda currently sells just one SUV model – the Elevate – while its other two models, Amaze and City, are sedans.
At the Japan Mobility Show, Honda did the world premiere of the Honda 0 α (alpha), and Honda Motor Co’s director, president & representative Toshihiro Mibe announced that Japan and India will be the first two markets where it will be sold, starting 2027.
Addressing the necessary investments to support this renewed focus, Nakajima acknowledged the need for production capacity enhancement. Honda’s current manufacturing facility in Tapukara, Rajasthan, has an annual capacity of 180,000 units. While a complete investment plan is pending, Nakajima said that increasing sales volume will necessitate factory expansion and capital infusion.
He also provided clarity on the potential revival of the Greater Noida plant, which ceased manufacturing operations in 2023. While no decision has been taken, Nakajima said that the company is exploring several options for future expansion, including the possibility of a “new plant in south India,” but stressed that “this is just an option.”
The pivot comes as Honda seeks to regain market share, which had dipped amidst intense competition. The carmaker registered growth of 20% in sales in calendar year 2024, selling 131,871 units. Exports played a significant role in this growth, accounting for 63,221 units, nearly matching the domestic sales figure of 68,650 units. The carmaker sold 110,143 units in calendar year 2023, with domestic volumes of 84,289 units.