Honda Cars India to Start Retooling of its Plant in 2024

Published On: 30 October 2023
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Honda Cars India will unveil its first electric SUV in India in 2025, and it will be based on the Honda Elevate.

Honda Cars India Ltd. (HCIL) has confirmed that the company will begin retooling its plant in Tapukara, Rajasthan, in 2024. The Japanese automaker confirms that as the company prepares its first electric sports utility vehicle for India, additional investment is essential in this process. Honda Cars India will unveil its first electric SUV in India in 2025, and it will be based on the Honda Elevate. The Honda Elevate is Honda’s subcompact crossover SUV, and in India, it was introduced in 2023. The Honda Elevate is being manufactured at Honda’s Tapukara-based facility in Rajasthan. The upcoming EV will have the same production hub. Honda Cars India has not revealed the name of its new electric SUV, but it is currently in development.

Honda’s original plant, located in Greater Noida, Uttar Pradesh, was shut down in 2020. The Tapukara-based facility is the company’s global production hub and the only functioning one in the country. Alongside the new electric SUV, the Elevate, City, and Amaze are currently being manufactured there.

The Tapukara-based facility has enough capacity to produce a brand-new model lineup. The President and CEO of Honda Cars India Ltd. (HCIL), Mr. Takuya Tsumura, stated that Honda is planning to increase the capacity of this plant for EV production. However, if more volumes are required for this new EV, the company might also restart the original plant.

Honda Cars India is planning to boost production capacity for two reasons: one is to serve domestic sales, and the second is to boost the exporting process of the new EV and the Elevate. The new electric SUV is going to be a global model, and it will be exported to global markets as well.

Honda Cars India confirmed that it will require further investment to retool its existing plant, but the company hasn’t revealed any specific amount. Mr. Tsumara stated that "we are going to launch a BEV within the next three years, so naturally there will be some investment for that. And our plan is to keep pushing forward with our electrification."

By the end of 2023, HCIL is planning to boost its production capacity by 35 percent. The company also plans to launch a new model each year. A new variant of the Amaze compact sedan is expected to launch in 2024, and the new EV will be launched in 2025.