Cost pressures and deadlock force Honda to rework India strategy, sources say
The automaker is partnering with Tata Technologies after its Japanese and Indian managers failed to agree on which suppliers to use for upcoming cars.
MUMBAI/TOKYO - Honda Motor is reworking its India strategy, according to sources familiar with the matter. The Japanese automaker plans to reduce costs by up to 20% and halve development times through a new partnership with Tata Technologies, a move driven by financial pressures and competitive forces. Honda is grappling with heavy losses related to electric vehicles, expecting them to exceed $12 billion.
The company is shifting focus towards gasoline-electric hybrids and cutting expenses, with recent reports indicating it aims to slash over $9 billion in costs over the next four years. Suppliers have been instructed to significantly reduce prices. In May, Tata Technologies was chosen by Honda to develop vehicles for the Japanese automaker, though the companies have not confirmed this public statement.
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