Honda Ready To Supply Hybrid Tech To Indian Carmakers
Honda is exploring the possibility of supplying products, platforms and electrification technology to other domestic carmakers as part of its plan to launch 10 new models by 2030. The move marks a change for a company that has usually worked on its own, even as alliances have become common in the global automotive industry.
What Honda is willing to share is still being defined. The scope could range from full badge engineered models to platform and powertrain sharing, and may even include access to Honda's new ASIMO software operating system, which will underpin its future 0 Series electric vehicles. Honda's experience in hybrid systems is another area where it could support domestic manufacturers who are preparing for tighter emission norms.
The logic is straightforward. Developing electric vehicles, software defined vehicles and advanced electronics is becoming more expensive. Other carmakers such as Maruti and Toyota, Skoda and Volkswagen, and Renault and Nissan already show how collaborations can split development costs and deliver economies of scale. Honda opening the door to similar arrangements indicates that it is now willing to use partnerships to stay competitive.
Shrinking Line Up And Need For Scale
Honda has been under pressure in key global markets such as the United States and China, and its domestic business has also shrunk in recent years. The company currently sells only three models in the country, the Elevate SUV, the City sedan and the Amaze compact sedan. This limited line up has struggled to keep pace with a rapidly expanding SUV market where Tata Motors, Mahindra, Hyundai, Maruti Suzuki, Kia and Toyota have been launching multiple models across price bands.
Honda's market share has declined as a result. The company stopped production at its Greater Noida facility in December 2020 and consolidated manufacturing at its Tapukara plant in Rajasthan. That decision led to questions about whether Honda would scale back its ambitions, but the company has since set up a dedicated project team focused on the domestic market.
The 10-model plan unveiled by Honda includes seven SUVs, which reflects the segment's dominance. A key product in this plan will be the Honda 0 Alpha electric SUV, set to debut in 2026. The 0 Alpha will be built at Tapukara and exported to Japan and other Asian markets, making the country both a production and export hub for a global Honda model for the first time.
Honda also aims to re-enter the premium space with the possible return of nameplates such as the CR V, likely with advanced hybrid or electric powertrains. A new sub four metre SUV is expected to plug a major gap in Honda's line up, which is important in one of the highest volume segments domestically.
Hybrid Tech As A Key Asset
Beyond manufacturing, Honda wants to position the country as a global centre for software development, focusing on digital connectivity, vehicle intelligence and next generation mobility solutions. A dedicated project team has been tasked with building a clear product and technology roadmap.
Honda's hybrid technology is central to its pitch to other manufacturers. The company has decades of experience with hybrid systems. With emission norms tightening under CAFE III regulations from April 2027, domestic brands may look for proven hybrid solutions rather than starting from scratch. Honda's strong hybrid systems use larger batteries and more powerful electric motors than mild hybrids, which can deliver notable fuel efficiency gains while preserving performance.
Honda categorises hybrids within its petrol powertrain forecast, which means future petrol sales will include possible hybrid models. The brand has also been critical of state level incentives that favour hybrids over electric vehicles, pointing out that in states offering hybrid subsidies, electric vehicle penetration has stayed at around 1.5 per cent compared to the national average of about four per cent. Even so, hybrids remain an important bridge technology for the company and a likely area of collaboration.
Alliances, Fuel Cells And Global Context
Honda Motor Company CEO Toshihiro Mibe has said that the company is open to alliances across different areas as long as they are win win arrangements. Honda has partnered with General Motors for the North American market, where the two companies are jointly developing performance cars and driverless taxis. Unlike the Renault Nissan Mitsubishi Alliance or the Toyota Suzuki partnership, Honda's agreement with GM is structured as a strategic collaboration rather than a capital heavy alliance.
Mibe has stated that there is scope for various kinds of alliances wherever both companies can find benefit. Honda has multiple discussions ongoing with GM to identify such engagements. In fuel cells, Honda has created a joint venture company to produce fuel cell systems and plans to launch a car using those fuel cells next year.
For domestic manufacturers, partnering with Honda could provide access to ready platforms, hybrid technology and electrification know how without large upfront investments. Smaller brands or new entrants that want to scale up quickly could tap Honda's engineering and manufacturing capabilities.
Honda's shift towards partnerships mirrors a wider trend in the auto industry, where the high cost of electric vehicle and emission compliance programmes is pushing even independent manufacturers to work together. The Toyota Suzuki partnership, which has helped Toyota grow volumes through rebadged Maruti models, shows the upside of such deals.
Whether Honda's new partnership strategy will succeed will depend on how quickly it can finalise agreements and translate them into products on the road. What is clear is that by opening itself to supplying platforms and hybrid tech to other carmakers, Honda is choosing scale and efficiency over going it alone.
Via ACI