Honda outsources programme

Honda has outsourced development of a new vehicle programme to Tata Technologies, the first time the Japanese brand has entrusted an Indian engineering services company with building an end-to-end platform.

The platform is expected to support multiple models, according to people familiar with the matter. It is intended to accommodate fossil-fuel models as well as electrified powertrains for hybrids and EVs, the sources have told Automotive News. 

The outsourcing of this crucial function marks a departure for Honda, which has typically kept development of core platforms mainly in-house or in its supplier network. 

It comes as the brand overhauls its product roadmap after reporting its first annual loss since it was founded in 1948. It has shelved several planned EV programmes and has accelerated cost-cutting efforts.

The company “is always considering the possibility of external partnerships as part of its efforts to strengthen its competitive edge”, says a Honda spokesperson while declining to comment on market speculation or any details regarding specific partnerships.

Speed is of important for Honda in India as it continues to operate with an outdated portfolio, trailing rivals such as Toyota and Maruti Suzuki in a country it has identified as a key market alongside Japan and North America. 

While Honda doesn’t sell currently sell BEVs in India, local companies Tata Motors and Mahindra have launched numerous models to capture the market early.