India most promising and exciting markets in the world: Honda Cars India CEO

Speaking at the Japan Mobility Show 2025, Takashi Nakajima, President and CEO of Honda Cars India, said that India is one of the most promising and exciting markets in the world currently. He added that the company considers India a key market for its future growth alongside the US and Japan.

"Our two-wheeler business is already very big in the country, and we are aiming to follow a strong growth direction for our four-wheeler business by building both brand and volume," he added.

Nakajima said the company's stance regarding India has undergone a change since the last couple of years.

"Maybe three years ago, we were not like that. But now we are focussing on concentrating much on India. Considering the future business expansion, India is the most important," he stated.

The Japanese auto major also unveiled Honda 0 a (alpha), its next-generation electric vehicle (EV on Wednesday, October 29, which is scheduled to go on sale in India in 2027. The production model of the Honda 0 a is scheduled to go on sale globally, mainly in Japan and India, in 2027. Honda 0 a would be the first battery electric vehicle model for the company in India.

The Honda 0 a is being developed as an SUV that will blend with both urban and natural environments, the automaker stated while unveiling the model at the Japan Mobility Show 2025.

The Tokyo-headquartered automaker, which operates in India through a wholly owned subsidiary, plans to drive in more SUVs in the country, as the segment continues to see robust sales across varied price points.

Toshihiro Mibe, Director, President and Representative at Honda Motor, said that the company was working toward an ambitious goal of achieving carbon neutrality for all of its products and corporate activities by 2050. Although the market environment surrounding electrification continues to be uncertain, the company believes that, in the long run, the shift toward EVs will continue. Therefore, the automaker is steadily preparing to deliver attractive EV models in the upcoming electrified era, Mibe stated.

Following the introduction of the Honda 0 Saloon and the Honda 0 SUV in January this year, the Honda 0 a will be added to the lineup as a gateway model for the world of Honda 0 Series, featuring a refined design and a spacious cabin, the company stated.

Mibe noted that the Honda 0 Series is the next-generation series of EVs that Honda will offer by going back to the starting point of Honda as an automaker and creating new EVs from "zero" based on original ideas.

In Japan, three Honda 0 Series models, Honda 0 Saloon, Honda 0 SUV, and Honda 0 a, will go on sale before the end of the fiscal year ending March 31, 2028. Honda has already stated plans to launch multiple electric models in India over the next few years.

Elaborating on the focus areas for the company to grow car sales in India, Nakajima said the company is looking to expand its model lineup in the country. Honda plans to introduce three new models by the 2026-27 fiscal year in India as it looks to tap growth opportunities in the robustly growing SUV segment. The company currently sells just one SUV model in the market, while its other two products, Amaze and City, are sedans.

The new models would encompass both hybrid and battery electric powertrains.

Nakajima said the company would focus on both internal combustion engine-powered models as well as electric and hybrid powertrains going ahead "Gradually, we will increase the share of battery electric vehicles and battery vehicles as we aim for carbon neutrality by 2050," he added.

When asked if the company is lining up fresh investments for enhancing production capacity to meet future demand, Nakajima said: "We do not have a complete plan yet, but of course, in order to increase sales, factories should be necessary and of course some investment needs to be done."

The company's Tapukara-based manufacturing facility in Rajasthan can roll out 1.8 lakh units per year.

When asked if the company's Greater Noida plant can also see some kind of revival as part of expansion plans, Nakajima said: "We are now investigating which way is best considering future expansion, but there are many options. We can also consider developing a new plant in the South, for example..This is just an option. We have not decided anything yet."

In 2023, Honda Cars India formally announced the closure of manufacturing operations at its Greater Noida facility in Uttar Pradesh. The plant had an installed production capacity of one lakh units per annum.

The automaker had cited the decision to cease production at the plant, which came up in 1997, as part of the realignment of manufacturing operations with the goal of improving business efficiency.

Honda has seen its market share dip considerably over the last few years amidst enhanced competition in the Indian market. Honda Cars India registered a cumulative growth of 20% in its total sales with 1,31,871 units sold during the calendar year 2024. Domestic sales of the company stood at 68,650 units and exports at 63,221 units last year. The company sold a total of 1,10,143 units in 2023, with domestic volume of 84,289 units.

(With inputs from Press Trust of India)