Honda targets 20% cost cuts, faster car development in India with Tata Technologies: Report
- IBEF
- October 6, 2026
Honda Motor aims to reduce costs by up to 20% and halve vehicle development times in India under its partnership with Tata Technologies, according to people familiar with the matter. Under the outsourcing agreement, Tata Technologies will develop vehicles for the Indian market, while Honda will oversee the process to ensure quality standards and retain control over technology, connectivity and driver-assistance systems. The partnership comes as Honda seeks to reduce expenses and strengthen its product strategy amid increasing competition. Tata Technologies was selected for its access to a broad network of local suppliers and its understanding of Indian consumer preferences. The partnership had reportedly been under discussion for about two years before being finalised.
The first vehicle being developed under the partnership is a sub-four-metre SUV targeted for launch in 2028, followed by a mid-size SUV. Honda has said it plans to introduce vehicles in these categories in India from 2028 onwards. The move is aimed at strengthening Honda’s presence in India, where its market share has declined to 1.3% from a peak of 7.3% more than a decade ago and its portfolio has narrowed to four models. The company is seeking to make manufacturing and sourcing in India more competitive and develop products better aligned with local demand. Honda also plans to strengthen its presence in the growing SUV segment. If the first product performs well in terms of quality, sales and profitability, the partnership could create opportunities for exports from India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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