Japanese automaker Honda is set to expand its footprint in the Indian car market with the introduction of three new nameplates by the financial year 2026-27. Among the upcoming models is an electric vehicle (EV) based on the company’s Elevate SUV, alongside hybrid and fully battery-electric powertrains.
“The three launches are the first step (towards increasing market share in India). We are going to have 5 SUVs by 2030. India is emerging as a very important market for headquarters in Japan and there is going to be a lot of intervention and strong action from us,” Kunal Behl, vice-president (marketing and sales), Honda Cars India Ltd (HCIL) told TNIE on Wednesday.
He added, “We are operating in two sedan segments which is like 8-9% of the industry. At present, the overall representation of Honda is in limited segments. We have been not aggressive on the many segments which we are going to work on.”
The company currently sells just one SUV model and two sedans - Amaze and City – in India. Despite being an early entrant in India, its market share here is on the lower side when compared with brands such as Toyota or Kia.
To address this, the company will have more sports utility vehicles (SUV) as this now contributes to more than half of annual passenger vehicle (PV) sales.
“The market shift is more towards SUVs. That is why we decided to put more models on the SUV side. By 2030, we will have five models,” said Honda Cars India President and CEO Takuya Tsumura.
In FY2023-24, Honda sold 86,584 PVs in India, down 5% on a year-on-year basis. It expects sales to rise as the brand on Wednesday launched the third generation of Honda Amaze, priced between Rs 7.99 lakh and Rs 10.89 lakh (ex-showroom).
“The hatchback segment is registering a much steeper fall in sales when compared to the compact sedan segment. In the first eight months of FY25, sales of hatchbacks declined by 22% and that of entry-sedans dipped by just 4%,” Behl said.
“This gives us confidence that Indian buyers are upgrading to a higher segment without compromising on safety. I am sure the features we are offering, including ADAS at this price point, will help us to grow our sales,” he added.
Honda said that the new Amaze will target personal and family consumers, unlike competitors who rely heavily on commercial fleet operators to boost compact sedan sales. He added that Honda dealers can proceed to retrofit the new Amaze with CNG fuel option.
The new Amaze will primarily compete against the recently launched Maruti Suzuki Dzire which scored very high on safety rating and is offering best-in-class fuel efficiency. Honda claims that the new Amaze incorporates their global safety standards, offering 28+ advanced active and passive safety features.
The sedan is peered by an E20 compliant 1.2L 4 Cylinder i-VTEC SOHC petrol engine and is available with both CVT and 5-speed Manual Transmission options. The CVT has a claimed fuel efficiency of 19.46 km/l.