Honda Cars India is shifting gears towards electric vehicles with its latest venture called 'ACE,' which stands for 'Asian Compact Electric.' This project, anticipated to be ready by 2026, is expected to propel the production of a new EV SUV derived from the Elevate platform. Reports suggest this new model, currently referred to as DG9D, could yield up to 100,000 units annually, with a significant portion earmarked for export, particularly to Japan and other key global markets.
The company, refraining from divulging specifics due to confidentiality policies, confirmed plans to introduce five SUVs in India by 2030, utilizing the country as a pivotal export base for future Honda EVs. The forthcoming Elevate-based EV is set to follow suit, joining the fray in the burgeoning midsize EV SUV segment, similar to rivals like Hyundai Creta EV, fashioned as an ICE-converted derived EV.
Honda Cars India, during the 2023 Japan Mobility Show, indicated plans to retool its Rajasthan plant for EV production starting in 2024. The company envisions potential additional investments in India, potentially focusing on capacity augmentation or even contemplating a second plant down the line based on achieved volumes.
While precise investment figures remain undisclosed, Honda has earmarked funds for the new EV and upcoming electric vehicle initiatives, affirming a commitment to advancing their electrification agenda. The surge in production capacity isn't solely intended for domestic sales but also aims to cater to global exports of the Elevate and subsequent EVs manufactured in India.
The significance of India in Honda's global strategy was underscored during the global premier of the Elevate SUV, highlighting the country's pivotal role as a key global export hub. Toshio Kuwahara, President and CEO of Asian Honda Motor, emphasized India's importance in Honda's global network, anticipating the Elevate to fortify export volumes from the country.
Looking ahead, it's projected that Honda's exports from India might double by 2025, with the ACE project contributing significantly, potentially constituting 30-40 percent of the total output destined for overseas markets.
Adding to this, a Honda Cars India spokesperson affirmed that after its debut in India, the Honda Elevate, set for a spring 2024 launch in Japan under the brand name WR-V, will be a pioneering model manufactured in India and exported to Japan. This move not only showcases India's manufacturing prowess but also aligns with Honda's vision of positioning the country as a pivotal export hub.
In summary, Honda's ACE project signals a definitive shift towards electric vehicles, with plans to utilize India's manufacturing capabilities as a linchpin for global exports of their new EVs. This strategy reaffirms Honda's commitment to furthering their electrification initiatives on a global scale.