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Honda is preparing its biggest product overhaul in years to increase market share as new SUVs, hybrids and a locally-made EV are under development
New SUVs, improved hybrid presence and a locally developed EV are about to become the Honda’s biggest weapons in India over the next few years. A factory capable of producing 1.8 lakh vehicles annually is currently operating far below its ceiling and Honda wants to change that without building an entirely new plant.
For a long time, Honda Indian business revolved almost entirely around sedans. City carried the brand for years while Amaze handled entry-level volumes. Meanwhile, rivals rapidly expanded SUV portfolios across nearly every price band. Honda’s market share gradually shrank after products such as BR-V and Mobilio disappeared from the domestic portfolio.
Now the company is preparing its biggest product overhaul in years to increase market share. The first signs have already arrived as a duo of new products have come in. Honda recently revealed the ZR-V Hybrid for India while simultaneously updating the City sedan. The ZR-V sits at the top of the company local lineup and arrives as a completely built import with deliveries beginning in July 2026.
However, imported products alone will not solve Honda volume problem. Much larger expectations are tied to future locally developed SUVs. An electric SUV based on the Elevate platform is already under preparation and could arrive around FY27. Apart from domestic sales, the model may eventually support export operations as well as Honda views India not merely as a retail market anymore.
Another major gap Honda plans to address is the compact SUV category. Since the WR-V’s exit, the company has lacked presence in one of India highest volume segments and the latest global WR-V sold globally did not make the cut. Instead, a new sub-4m SUV is reportedly under development while another larger midsize SUV positioned above Elevate is also believed to be in the pipeline.
Fully electric vehicles are only one part of the upcoming lineup. Honda still sees strong hybrids as highly relevant for local conditions but it will bring in zero-emission models including a new midsize e-SUV. Its road test officially began a few months ago. The Rajasthan facility itself still has room for expansion as it could rise to around 2.2 lakh units.
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