Honda’s market share in India has declined to below 2%, compared with about 7% more than a decade ago.Honda Motor Co. has outsourced the development of a new vehicle platform to Tata Technologies, marking the first time the Japanese automaker has entrusted an Indian engineering services company with an end-to-end vehicle programme, Bloomberg reported.
The platform is expected to underpin multiple vehicle models and support internal combustion engine (ICE), hybrid and battery electric vehicle (EV) powertrains, the people familiar with the matter said.
The markets where these vehicles will be sold have not been disclosed.
The move marks a shift in Honda’s product development strategy, as the company has traditionally developed core vehicle platforms in-house or through its established supplier network.
A Honda spokesperson said that the company “is always considering the possibility of various external partnerships as part of its efforts to strengthen its competitive edge,” but declined to comment on specific partnerships or market speculation.
Cost reduction and faster development
According to the report, the outsourcing decision comes as Honda revises its product roadmap after reporting its first annual loss since the company was founded in 1948. The automaker has shelved several planned electric vehicle programmes while stepping up cost-cutting measures. The report said that the speed has also become a priority for Honda in India, where its product portfolio has lagged competitors such as Maruti Suzuki India and Toyota Motor. Honda currently does not sell battery electric vehicles in India, while Tata Motors and Mahindra & Mahindra have introduced multiple EV models in the market.
Honda’s market share in India has declined to below 2 per cent, compared with about 7 per cent more than a decade ago.
While Honda has previously partnered with automakers such as General Motors to develop models including the Prologue and Acura ZDX, this is the first time it has engaged an Indian engineering services company to develop an entirely new vehicle platform.
India’s engineering role expands
The engagement also reflects India’s growing role as an engineering and product development hub for the global automotive industry, with companies including Mercedes-Benz Group, BMW and Honda increasingly outsourcing vehicle development work to engineering service providers. Without naming Honda, Tata Technologies Chief Executive Officer Warren Harris told analysts in July that the company was making progress on “a full vehicle development program with a leading Japanese automotive” original equipment manufacturer.
Honda Chief Executive Officer Toshihiro Mibe said in May that the company planned to “utilise external resources more flexibly and strategically”, citing the cost competitiveness and engineering talent available in India and China.
Honda has also said it plans to introduce a new family of vehicles in India beginning in 2028 while expanding the country’s role as a manufacturing and export hub serving markets across Latin America and Southeast Asia.
