KATHMANDU: Honda is planning to cut vehicle development costs by around 20% and reduce development time in India through its partnership with Tata Technologies.
The move comes as Honda faces rising costs and declining market share in India. The company is also looking to strengthen its petrol-electric hybrid strategy while reducing operating expenses.
According to media reports, Honda aims to reduce its current five-year vehicle development cycle by up to 50%. The partnership with Tata Technologies is expected to help Honda access a wider network of local suppliers and develop vehicles better suited to Indian customers.
Honda will continue to oversee the development process and retain control over key areas such as technology, connectivity and driver-assistance systems.
Honda’s market share in India has fallen to around 1.3%, down from a peak of 7.3% over the past decade. The company currently has limited presence in the competitive compact SUV segment, with the Elevate being its main offering in the category.
Honda is also targeting more than $9 billion in cost reductions globally over the next four years as it reassesses supplier costs and its product strategy.
Honda President Toshihiro Mibe has identified India as a key market and said the company needs to offer better value by balancing quality and price.
The first model developed through the partnership is expected to be a sub-4-meter SUV by 2028. It will reportedly be followed by a mid-size SUV, according to ET.
