Honda Cars India to start EV journey in 2026-27, strong hybrid models on cards

Honda Cars chose to begin its electrification journey with a battery electric vehicle instead of a strong hybrid, citing the importance of EVs in light of the expected implementation of CAFÉ 3 norms in 2027.

By Kiran Murali and Ketan Thakkar calendar 04 Dec 2024 Views icon5966 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Third gen Honda Amaze image

Third gen Honda Amaze

As the Indian automotive market braces for a wave of electric vehicles from all major carmakers, Japanese automaker Honda is preparing to chart its own electrification path in India. The company is set to carve its own niche in the electric vehicle segment in 2026-27, by introducing one fully electric vehicle and strong hybrid powertrains.

“We will be introducing three models 2026-27. One is a battery-electric vehicle based on Elevate and two others. We can say those three models will be hybrid or battery-electric vehicles. As part of the global company’s policy, we are going to keep introducing and increasing the ratio of electrified vehicles,” Honda Cars India President and CEO Takuya Tsumura, said. 

The management noted that Honda Cars decided to start its electrification journey with a battery electric vehicle rather than a strong hybrid as it believes electric vehicles are critical considering the implementation of CAFÉ 3 norms likely to be introduced in 2027. “That is why we decided to start with electric vehicles based on Elevate. But other future lines with have hybrid technology as well,” Tsumura said.

Among plug-in hybrids, strong hybrids, and range extenders, the automaker sees strong hybrids as more relevant in the current context of the Indian automobile industry. The management, however, did not disclose additional details of the plan for the hybrid lineup.

Earlier this year, Autocar Professional had exclusively reported that Honda Cars is working on a compact electric vehicle project named ACE. The ACE — which stands for Asian Compact Electric — is likely to be ready by 2026 and almost 50-70% of the vehicles produced in India will be exported to key overseas markets including Japan.

The first electric vehicle will be based on the Elevate SUV, but will have a different nameplate and design. It will be produced at Honda's second plant in Tapukara, Rajasthan, which boasts an annual production capacity of approximately 1.8 lakh units. 

The company is currently not manufacturing cars at its first plant in Greater Noida. The facility, which used to make CR-V and Civic, stopped production in 2020. Tsumura noted that restarting the Greater Noida plant is part of the company’s thought process for the future, but there are no concrete plans in place at this time.

Honda Cars is positioning India as a key export hub for its global operations. Similar to the Elevate, the upcoming electric vehicle will be a global model, with export potential extending far beyond the reach of the City and Amaze.

Despite weak domestic volumes, the company managed to post a 25% growth in profit before tax to Rs 1,029 crore in India during 2023-24 on the back of strong exports. The export volume jumped 64% jump during the year 37,660 units. 
Honda Cars believes that more localization of its future products and technologies will be necessary to be in India. 

(with inputs from Mayank Dhingra)

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