Honda partners with Tata Technologies to slash costs and speed up Indian vehicle development

Honda Motor, burdened by anticipated EV losses exceeding $12 billion, is overhauling its approach in India by collaborating with Tata Technologies. The agreement is expected to deliver up to a 20% cost reduction and halve the typical five-year development timeline for new cars aimed at the Indian market. The partnership emerged after a stalemate between Honda's Japanese leadership, which favored established suppliers, and its Indian team, which pushed for local sourcing to lower costs.

Under the deal, Tata Technologies will handle vehicle design while Honda supervises technology, connectivity and driver-assist systems. The first product will be a sub-4-metre SUV slated for a 2028 launch, with a midsize SUV to follow, and potential future exports from India if successful. Honda acknowledges its limited product lineup and shrinking market share in India, and says the collaboration is meant to offer better value for customers.