Is Honda looking for a local partner in India?

Japanese carmaker Honda Motor Co. on Thursday said it plans to strategically leverage cost competitiveness and external resources of a local business partner in India.

“We will proactively utilize local development resources, including external resources to introduce new models as fast as possible,” Honda President and Global CEO Toshihiro Mibe told reporters in a press conference after the company announced its results for the financial year 2025-26.

The Japanese car giant is currently in talks to forge an alliance with a local business partner in India.

“On platforms, we are in discussions with partner companies, so I cannot give you the details today. There are two companies. With partners, we can utilize their platforms to build new products,” Mibe said, without naming any local partner.

Honda’s car business has been struggling in India over the past several years. The carmaker’s market share has slipped from 4% in the financial year 2019-20 to 1% in FY26. It’s product portfolio in India is limited to just three models: the Elevate mid-size SUV, the Honda City sedan and the entry-sedan Amaze. With the launch of the imported ZR-V, Honda will re-enter India’s premium SUV space years after it discontinued the CRV.

The Honda CEO called India as one of the few markets in the world where growth is expected. However, currently Honda has a presence in only limited product segments and has not been able to expand its India sales, Mibe acknowledged.

Honda said it will redefine the best specifications that are well-aligned with the characteristics and preferences of customers in India.

“We have not been able to deliver products that meet customer preferences in India. It has been a standard practice to develop and sell all products based on global standard performance specifications, regardless of target countries and regions. However, climate conditions, vehicle usage, and customer preferences vary significantly from country to country and region to region. The global standard approach may have been somewhat excessive. Therefore, we will redefine the best specifications that fully match the market requirement and customer needs in India,” Mibe explained.

From 2028, Honda plans to launch strategic models in India in two categories: category for vehicles under 4 metres in length, the largest volume segment, and mid-size category.

“While working internally to further refine the core of Honda competitive advantages, we will proactively leverage external competitiveness and resources in areas that can increase our speed, flexibility and cost competitiveness, thereby strengthening the overall competitiveness of Honda,” said Mibe.

Honda also plans to leverage the success of its motorcycle business in India, which sells nearly 6 million units of motorcycles annually. “By steadily capturing demand from customers upgrading from motorcycles to automobiles, Honda will strive to grow it business in India,” the automaker said.

Honda plans to expand sales through various measures including the utilization of its new captive finance company in India, which is scheduled to become operational before the end of the current fiscal year ending March 31, 2027.