Honda outsources new vehicle program to Tata Technologies to cut costs
The farming out of this function marks a departure for Honda, which has typically kept development of core vehicle platforms largely in-house or within its supplier network.
Honda has outsourced the development of a new vehicle program to Tata Technologies, according to people familiar with the situation. This marks the first time the automaker has entrusted an Indian engineering services firm with creating an end-to-end platform to help reduce costs. The platform is expected to support multiple car models, including conventional fossil fuel-powered vehicles and electrified powertrains for hybrids and electric vehicles.
However, the specific markets for these Tata-engineered vehicles have not been disclosed. This move represents a significant shift for Honda, which typically maintains a strong focus on developing core vehicle platforms in-house or through its existing supplier network. The decision comes as Honda navigates a major overhaul of its product roadmap following its first annual loss since its founding in 1948.
The company has shelved several planned electric vehicle programs and is accelerating cost-cutting measures in response to these financial challenges.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
