Stories
Honda Market Share in India Plummets From 7 Percent to 1.3 Percent Over a Decade
- •Honda Cars India saw its domestic passenger vehicle market share crash from nearly 7 percent in FY16 to 1.33 percent in FY26, even as the overall Indian market expanded by 66 percent.
- •Industry experts attribute the steep decline to a delayed response to the booming SUV market, a heavy reliance on sedans, and a limited portfolio missing key segments like sub-4-metre SUVs.
- •Rivals such as Tata Motors, Mahindra and Kia have recorded massive multi-fold growth during the same period through aggressive product launches and diverse powertrain options.
- •Honda has closed its Greater Noida manufacturing plant, leaving Tapukara as its primary facility, and has faced lengthy decision-making processes tied to its headquarters in Japan.
- •Honda plans a recovery strategy featuring new SUV models, upcoming electric vehicles, and India-focused strategic vehicles slated for release toward 2028.
Key Questions Answered
Honda's India market share crashed from nearly 7% in FY16 to 1.33% in FY26. Industry experts attribute this decline to a limited product portfolio, delayed model introductions, a weak presence in the high-growth SUV segment, and a lack of diverse powertrain options while rivals expanded aggressively.
Honda plans to introduce India-specific strategic models, including a sub-four-metre category vehicle, starting in 2028 to compete more strongly in key volume segments. This model is widely expected to be an SUV rivalling popular choices like the Tata Nexon and Maruti Suzuki Brezza.
Honda has planned six product launches during FY27 to bolster its market presence. These include the updated City sedan and Elevate SUV, the ZR-V premium SUV, and its upcoming battery electric vehicle scheduled for the second half of the fiscal year.
