Last Updated: 5/21/2025 11:39:00 PM
Japanese carmaker Honda Motors is planning to set up a subsidiary in India that would work towards developing cars for the local market and increasing the use of locally-made components in its existing vehicles to make them more affordable. Sources with knowledge of the matter said that the facility, Honda Genbetsu India (HGID), would focus on research and development and is likely to come up at the company's existing manufacturing plant at Greater Noida. It already has local R&D operations, which would likely be separated into the new unit, they said. The unit will likely come at an initial investment of around INR 500 crore. According to sources in the automotive industry, this facility will extend support for Honda's localisation strategy for its running models as well as provide designing support for some upcoming India-specific models in the near-term. After developing a phenomenally fuelefficient diesel engine and lining up some interesting products like the Mobilio multipurpose vehicle and the Jazz premium hatchback for India, Honda is enthusiastic about its prospects in the Indian auto market. A source said that "After the success of its India-specific Amaze sedan, Honda is revitalising its plans for this market, It plans to develop smaller cars focusing on the Indian market where HGID would play a critical role." However, Honda sales have zoomed after the launch of its diesel cars, especially the Amaze. Source – Economic Times
