Honda aims to take first steps in it’s electric vehicle journey in India
Japanese automaker Honda Motor plans to establish a lithium ion battery producing unit in India as it looks to tap the emerging, possibly profitable electric automobile opportunity in the country.
Honda Cars India Ltd will next recognize the type of electric vehicles the company would want to make locally, a person with direct knowledge of the development stated.
These efforts were discussed at a Honda India board conference recently and a decision is imminent, the individual said, refusing to disclose the investment that the task would entail. Honda is also actively associated with creating electric vehicle method for the Indian market.
The National Democratic Alliance desires only electric vehicles to ply on India’s roads by 2030 as part of its commitment to reduce greenhouse gas emissions under the worldwide agreement on climate change, and to decrease costs on oil imports, which, according to one estimate, might double to an annual $300 billion by that year.
According to an announcement made by Honda, by 2030, electric automobiles will consist 65% of the company’s overall sales. Of that, 15% will be pure electric while the rest will be hybrid, plug-in hybrid and fuel-cell-powered automobiles.
Currently, the Indian unit is Honda’s fourth biggest after those in the United States, China and Japan, in regards to contribution to the group’s total vehicle sales.
In July, Honda Motor planned to form a joint endeavor with Hitachi Automotive Systems to make motors for electric automobiles. Hitachi will own a 51% stake in the joint venture company where as Honda will own 49%.
“Recently, on the international front, Honda has tied up with Hitachi for electric motors and we will take advantage of all those developments. Our India strategy has to line up with Honda’s worldwide strategy. We have been working on the electric vehicle strategy for rather a long time now,” stated Jnaneswar Sen, senior vice-president, Honda Cars India.
Sen declined to reveal any information about the business’s plan for electric vehicles in India. According to an executive, work has already started on the task at the research and development level. Honda’s first electric vehicle in India may be a product based on the Brio hatchback platform, the executive stated.