Japanese carmaker Honda Cars India Ltd is eyeing a comeback in the world’s third-largest car market by volume on the back of six new launches planned for the financial year 2026-27.

“We are expecting double-digit growth and outperforming the industry,” Takashi Nakajima, President & CEO, Honda Cars India Ltd, said while launching the new Honda City, a facelift of the longest-running nameplate in India since 1998.

Honda Cars India’s double-digit growth forecast for the ongoing financial year comes as the company’s hold over the Indian passenger vehicle market has weakened over the past few years, with its market share declining from around 4% in FY20 to nearly 1% in FY26.

The company renewed its focus on India with the announcement of new strategic models in two categories: an SUV under 4 metres in length, the largest volume segment in the country, and a mid-size SUV.

“Honda’s global leadership has emphasized that India is among the top three focus markets to realise the future growth in the automobile business. The focus is to introduce a strong pipeline of new products, and it was to achieve cost competitiveness,” Nakajima said.

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On Friday, Honda re-entered the premium sport utility vehicle space with the debut of the ZR-V, Honda’s flagship model in India. The ZR-V, which has clocked cumulative sales of 8 lakh units globally since 2022, will be imported as a CBU (completely built-up unit) from Japan in limited volumes. Honda was earlier present in this segment through the CR-V, which was discontinued in 2020 due to weak demand.

The ZRV strengthens Honda’s SUV portfolio in India and expands the company’s presence in higher-budget segments, said Nakajima.

Honda currently sells only three models in the country — the Elevate mid-size SUV, the Honda City sedan and the Amaze compact sedan.

Fiscal year 2026-27 will be a milestone year for Honda with six strategic launches, said Nakajima. “We will continue the momentum with a series of new launches, including our first BEV and new nameplates from our global lineup with advanced hybrid powertrains,” he added.

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On May 14, Honda President and Global CEO Toshihiro Mibe said Honda will proactively utilise local development resources in India, including external resources, to introduce new models as fast as possible. Mibe had called India one of the few markets in the world where growth is expected.

To meet the preferences of Indian car buyers, Honda is open to partnering with local companies in product development.
Mibe acknowledged that Honda has struggled to align its products with Indian customer preferences, saying the company’s reliance on globally standardised specifications may not have suited local market requirements.

Mibe said factors such as climate conditions, vehicle usage patterns and consumer preferences differ significantly across countries and regions, and added that Honda now plans to redefine vehicle specifications for India based on local market needs rather than following a uniform global approach.

“We will proactively leverage external competitiveness and resources in areas that can increase our speed, flexibility and cost competitiveness, thereby strengthening the overall competitiveness of Honda,” Mibe had said.

Published on: May 22, 2026 6:52 PM IST