Stories
Honda Overhauls India Strategy with Tata Technologies Partnership
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CNBC TV18•05-10-2026, 15:11
Honda Overhauls India Strategy with Tata Technologies Partnership
- •Honda is partnering with Tata Technologies in India to cut development costs by up to twenty percent and halve vehicle development times.
- •The shift follows internal disagreements between Japanese and Indian managers regarding supplier selection and a slump in Honda market share to 1.3 percent.
- •Honda aims to tackle losses and rival competition by focusing on gasoline-electric hybrids and affordable models tailored to the Indian market.
- •The first vehicle under the new partnership will be a small SUV targeted for launch in 2028, followed by a mid-size SUV and potential sedans.
Key Questions Answered
Honda aims to achieve up to a 20% reduction in costs and halve its vehicle development times from around five years under the outsourcing agreement with Tata Technologies.
Japanese managers wanted to retain established suppliers to ensure quality, while Honda's team in India pushed for greater use of local suppliers to lower costs and speed up development.
Honda plans to launch a small SUV under four metres in length targeted for 2028, followed by a second mid-size SUV and efforts to revive its strength in sedans.
