Indian Economy News

Five new SUVs are part of Honda's plan to ‘Elevate’ its wealth in India by 2030

According to senior officials of Honda, the Japanese auto major plans to launch five new sports utility vehicles (SUVs), including a fully electric model, in India by 2030 as it tries to revive its fortune in the country. The company unveiled its global mid-sized SUV Elevate in India which will take on the likes of Hyundai Creta, Kia Seltos, and Maruti Suzuki’s Grand Vitara.

Within three years, the Elevate will be available in an all-electric variant. The manufacturer intends to introduce Elevate over the next months, just in time for the holidays.

According to President and Chief Executive Officer (CEO), Honda Cars India, Mr. Takuya Tsumura, along with Elevate, the company is planning to launch five SUVs by 2030. With Elevate, Honda is looking to strengthen its presence in the Indian passenger vehicles market, where it is represented by sedans City and Amaze at present and enter the fast-growing SUV segment. He further said that currently the sedans account for almost 10% of the overall passenger vehicles (PV) market and Honda's participation is restricted in that segment.

He also mentioned that though sedans city and Amaze are doing well in that 10% of the market but on the other hand in the growing market SUVs are having more than 40% and the segment is growing year by year and hence having the new SUV will be very important for the company to participate in 50% of the overall market. In the future, the Elevate will be the mainstream product for Honda in India and the following models will play in the premium segment. Elevate comes with active and passive safety technologies such as an advanced driver assistance system (ADAS). India will be the first market for its launch and Honda is aiming to make its operations here as an export hub for the model.

Mr. Takuya Tsumura mentioned that Honda has decided to go directly to battery electric vehicle for Elevate and hence the model will not have a hybrid version. He added that the company will also enhance exports of its sedans City and Amaze. In FY23 Honda Cars India produced 1.2 lakh units and is targeting to increase it to 1.7 lakh units by FY25.

Co-Head of Regional Unit Asia and Oceania, Honda Motors, Mr. Toshio Kuwahara mentioned that being the third largest automotive market globally, India is a significant market for the Japanese automaker. He also mentioned that exports from India have also increased, and the country is one of the most important export hubs for the company globally. In line with the company's carbon neutrality targets, 100% of sales across the globe, including India will be from battery electric and fuel cell vehicles by 2040.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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