/images/ppid_59c68470-image-177874506989151329.webp)
What is the story about?
Japanese automaker Honda Motor Co., on Thursday, said India will play a key role in its future growth strategy as the company shifts more resources toward hybrid vehicles and restructures its automobile business.
The company said it will introduce India-focused models from 2028 in two segments — vehicles under four metres in length and mid-size cars. Honda said the products will be designed around Indian customer preferences.
Honda also plans to use its motorcycle business in India, which sells nearly 6 million units annually, to attract customers upgrading to cars.
As part of the strategy, Honda has set up Honda Digital Innovation India and said a new captive finance company in the country is expected to begin operations before the end of fiscal 2027.
Hybrid strategy expands
Honda President and CEO Toshihiro Mibe said the company will focus on rebuilding its automobile business over the next three years through cost reduction, higher development efficiency and stronger product offerings.
Honda said it aims to achieve consolidated operating profit of more than 1.4 trillion yen by the fiscal year ending March 2029.
The company will begin launching next-generation hybrid models from 2027 using an all-new hybrid system and platform. Honda plans to roll out 15 next-generation hybrid models globally by the end of fiscal 2030, mainly in North America.
Honda also said it plans to introduce large-size hybrid vehicles in the D-segment and above in North America in 2029.
Two prototypes shown
Honda unveiled two next-generation hybrid prototypes during the briefing — the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype. Both models are scheduled to go on sale within the next two years.
The company said its next-generation hybrid system will reduce costs by more than 30% compared with the hybrid system introduced in 2023.
Honda also expects fuel economy to improve by more than 10% when the new hybrid system is paired with a next-generation platform and a newly developed electric AWD unit.
The company said its next-generation advanced driver assistance system (ADAS), planned for launch in 2028, will be introduced in more than 15 models over five years.
North America reset
Honda said it will shift excess production capacity at its Ohio plants to gasoline and hybrid vehicles, while making all North American auto plants capable of producing hybrid models.
Honda and joint venture partner LG Energy Solution will also convert part of the EV battery production lines at L-H Battery Company to hybrid battery production.
The company said it plans to increase local sourcing of motor and inverter assemblies and components by more than four times the current level to reduce supply risks and limit the impact of US tariffs.
EV bets trimmed
Honda said it remains committed to achieving carbon neutrality by 2050 through a mix of EVs, hybrid vehicles, carbon-neutral fuels and carbon-offset technologies.
The company said it will continue developing EV platforms and all-solid-state batteries while applying its ASIMO OS software system to both EVs and hybrid vehicles.
Honda also said it will indefinitely suspend its planned EV value-chain project in Canada while it reassesses its procurement strategy.
As part of its financial roadmap, Honda said it will limit EV-related investments to around 0.8 trillion yen through fiscal 2029. At the same time, the company plans to invest 4.4 trillion yen in gasoline and hybrid vehicles and 1 trillion yen in software technologies.
The company said it will introduce India-focused models from 2028 in two segments — vehicles under four metres in length and mid-size cars. Honda said the products will be designed around Indian customer preferences.
Honda also plans to use its motorcycle business in India, which sells nearly 6 million units annually, to attract customers upgrading to cars.
As part of the strategy, Honda has set up Honda Digital Innovation India and said a new captive finance company in the country is expected to begin operations before the end of fiscal 2027.
Hybrid strategy expands
Honda President and CEO Toshihiro Mibe said the company will focus on rebuilding its automobile business over the next three years through cost reduction, higher development efficiency and stronger product offerings.
Honda said it aims to achieve consolidated operating profit of more than 1.4 trillion yen by the fiscal year ending March 2029.
The company will begin launching next-generation hybrid models from 2027 using an all-new hybrid system and platform. Honda plans to roll out 15 next-generation hybrid models globally by the end of fiscal 2030, mainly in North America.
Honda also said it plans to introduce large-size hybrid vehicles in the D-segment and above in North America in 2029.
Two prototypes shown
Honda unveiled two next-generation hybrid prototypes during the briefing — the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype. Both models are scheduled to go on sale within the next two years.
Honda Hybrid Sedan Prototype
The company said its next-generation hybrid system will reduce costs by more than 30% compared with the hybrid system introduced in 2023.
Honda also expects fuel economy to improve by more than 10% when the new hybrid system is paired with a next-generation platform and a newly developed electric AWD unit.
Honda Acura Hybrid SUV Prototype
The company said its next-generation advanced driver assistance system (ADAS), planned for launch in 2028, will be introduced in more than 15 models over five years.
North America reset
Honda said it will shift excess production capacity at its Ohio plants to gasoline and hybrid vehicles, while making all North American auto plants capable of producing hybrid models.
Honda and joint venture partner LG Energy Solution will also convert part of the EV battery production lines at L-H Battery Company to hybrid battery production.
The company said it plans to increase local sourcing of motor and inverter assemblies and components by more than four times the current level to reduce supply risks and limit the impact of US tariffs.
EV bets trimmed
Honda said it remains committed to achieving carbon neutrality by 2050 through a mix of EVs, hybrid vehicles, carbon-neutral fuels and carbon-offset technologies.
Honda Motor Co., Ltd. Director, President and Representative Executive Officer (Global CEO) Toshihiro Mibe
The company said it will continue developing EV platforms and all-solid-state batteries while applying its ASIMO OS software system to both EVs and hybrid vehicles.
Honda also said it will indefinitely suspend its planned EV value-chain project in Canada while it reassesses its procurement strategy.
As part of its financial roadmap, Honda said it will limit EV-related investments to around 0.8 trillion yen through fiscal 2029. At the same time, the company plans to invest 4.4 trillion yen in gasoline and hybrid vehicles and 1 trillion yen in software technologies.
/images/ppid_59c68470-image-177864518989918369.webp)
/images/ppid_59c68470-image-177848756513990241.webp)
