Japanese automaker Honda, which has seen its market share in India dwindle from 4% in FY20 to 1% in FY26, appears to have found a crucial local partner in Tata Technologies Ltd. The engineering service provider announced in its first-quarter FY27 earnings release that a major Japanese automotive OEM had selected it for a comprehensive full vehicle engineering program.
A Strategic Shift for Honda in India
Sources suggest this could be Honda's first ground-up product development partnership with an Indian company. The move follows statements from Honda President and Global CEO Toshihiro Mibe on May 14, indicating the company's intent to leverage external local development resources in India to accelerate new model introductions. Mibe had acknowledged Honda's past struggles to align its globally standardized products with unique Indian customer preferences.
Tata Technologies, a product engineering and digital services firm, began as a unit of Tata Motors, which still holds a 53.35% stake in the company.
Future Plans and Market Comeback
Honda is now committed to developing vehicles specifically tailored for Indian conditions, considering factors like climate, usage patterns, and consumer preferences. The company plans a significant comeback in India, the world's third-largest car market by volume, with six new launches slated for the financial year 2026-27.
Key to this strategy are new models planned from 2028 onwards, focusing on two critical segments: vehicles under four meters in length, which constitute the largest volume segment, and the mid-size category. Additionally, Honda is re-entering the premium SUV space with the ZR-V, its flagship model for India, which will be imported as a completely built-up unit (CBU) from Japan in limited volumes. Honda had previously discontinued the CR-V in 2020 due to weak demand in this segment.
Currently, Honda's Indian lineup includes only three models: the mid-size SUV Elevate, the mid-size sedan City, and the compact sedan Amaze.