The development comes just days after Tesla CEO Elon Musk tweeted that the company has plans to establish a “partial presence”: in India, Africa, and South America by the end of next year, with an aim to expand further in 2020.
Japanese automobile major Honda is in the process of finalizing plans that will see the company launch its first electric vehicle in the Indian market by 2023-2024, according to sources close to the company.
The planned launch of the electric vehicle for India will be part of the company’s global electric vehicle rollout plan, which will begin in China next year. While the sources claimed that the specific requirement for India’s e-vehicle is being gathered, a B segment vehicle is expected to be the first vehicle in the lineup. The announcement goes against the firms original stand, in which the company said that it is waiting for the Indian government to define the country’s electric vehicle policy. While the government is still to roll out its electric vehicle policy, unlike the past, Honda is now not going to sit out and wait for policy changes to define its electrified vehicles footprint.
Interestingly, this development comes just days after Tesla CEO Elon Musk tweeted that the company has plans to establish a “partial presence”: in India, Africa, and South America by the end of next year, with an aim to expand further in 2020.
Last year, Honda was on the lookout to establish a lithium-ion battery manufacturing unit in the country so as to strengthen its presence in the developing electric vehicle space in the country. In October, we reported that the company was ready to invest Rs 9,200 crore to set up its third facility in India with plans to manufacture Hybrid and Electric Vehicles, claiming that it can bring in electric vehicles in the Indian market soon if there is enough market demand for them to support the business. Since the company began its operations in the country in 1998, this is the largest investment, which more than doubled its financial commitment in the country to over Rs 18,500 crore.
When confirmed, Honda will become the last among the top five automakers in India to have an EV solution. Maruti Suzuki has already announced plans to launch an electric Wagon R by the end of this decade on a platform shared with Toyota Kirloskar. Hyundai Motor India, too, plans to come out with smart EVs while M&M and Tata have been pushing for EVs.