In a strategic move towards electric mobility, Honda Cars India is set to make significant strides with its ‘ACE’ project, signifying ‘Asian Compact Electric.’ The initiative, slated for completion by 2026, is poised to transform India into a global hub for electric vehicles (EVs). Almost 50-70 percent of the anticipated 1 lakh units annually produced under the project are earmarked for exports, including key markets like Japan.
Honda Elevate-Based EV: Catalyst for Growth
At the heart of the ACE project is a revolutionary EV SUV based on the Elevate platform, identified by the codename DG9D. This model is expected to contribute substantially to the annual production volume, with discussions suggesting a potential output of 1 lakh units. While specifics remain confidential, the project signals Honda’s commitment to a robust future, aligning with its vision to introduce five SUVs in India by 2030.
During the launch of the Elevate, Honda outlined its plans to utilize India as an export hub, emphasizing the importance of the country in its global strategy. The upcoming EV, derived from the Elevate platform, will follow the trend of ICE-converted EVs, akin to competitors like the Hyundai Creta EV. This strategic move underscores Honda’s dedication to sustainable and diverse electric offerings.
Production Plans and Capacity Expansion
Senior management at Honda Cars India has confirmed the commencement of retooling its Tapukara plant for EV production in 2024. The plant, with available capacity, is poised for the introduction of a new model line. While the possibility of a second plant is not ruled out, the focus on increased capacity is evident, considering the expected volumes from exports. Honda Cars India President and CEO, Takuya Tsumura, confirmed the likelihood of additional investments to support the new EV and future electric models.
The production capacity expansion aligns not only with domestic sales but also with the global export strategy for the Elevate and the upcoming EV. Toshio Kuwahara, President and CEO of Asian Honda Motor, emphasized India’s role as a global export hub during the Elevate’s global premiere, affirming its significance in Honda’s future plans.
Global Significance of India in Honda’s Export Strategy
The Elevate, set to debut in India in 2023, is scheduled for a spring 2024 launch in Japan under the brand name WR-V. This marks a significant milestone as the model will be manufactured in India and exported to Japan, showcasing the manufacturing capabilities of Honda’s India operations. With the ACE project in the pipeline, Honda anticipates that India’s contribution to its global exports will witness a substantial increase.
As Honda gears up for a paradigm shift towards electric mobility, the ACE project and the Elevate-based EV stand as testament to India’s pivotal role in Honda’s global automotive strategy.
