Honda bets big on India with all-new compact and mid-size SUVs

Honda is planning an SUV offensive for the Indian passenger vehicle market. The carmaker has revealed its plan to launch at least two SUVs in the country by the end of this decade. The Japanese auto major will launch a sub-4-metre compact SUV in 2028, which would challenge models like Maruti Suzuki Brezza, Hyundai Venue, Mahindra XUV 3XO, and Tata Nexon, among others. There will be another new model in the mid-size category, possibly challenging models like Maruti Suzuki Grand Vitara, Hyundai Creta, among others.

The auto OEM currently sells Honda Elevate in India, which is the only SUV in the Indian passenger vehicle market from the brand. The SUV has received a positive response since its launch, buoyed by the immense consumer demand for SUVs and crossovers in the country. Now, the auto company aims to expand its SUV range, with strategic models, which would ensure a significant bump in Honda's sales numbers and market share.

Honda identifies India as a priority market

Honda has identified India as a priority market for the brand's future growth. The OEM has positioned India alongside North America and its home market, Japan. Honda said India is one of the few markets in the world where further expansion is expected in the future. This expansion strategy includes new model launches across multiple powertrains as well as retail network expansion.

Honda adopts new India-specific vehicle strategy

Interestingly, despite being present in India for a long time, Honda Cars India holds only a 1.4%-1.7% market share in the country's massive passenger vehicle segment. The sales of the automaker in India are driven by the Elevate SUV, Amaze sub-compact sedan and City mid-size sedan.

Toshihiro Mibe, Director, President and Representative Executive Officer at Honda, admitted that its India strategy has not worked well enough so far. A key reason pointed by the brand behind this not-so-well-working strategy is operating in a limited number of segments. The carmaker admitted that it has not been able to fully grow sales volumes because the company lacks enough competitive models suitable for the Indian market.

The upcoming two SUVs, one compact and another mid-size SUV, will be strategic products to turn the tide, hinted the OEM. The automaker has said that its traditional approach was to develop products for global markets and then sell them in India, but the Indian customer needs, usage patterns, climate conditions, regulations and pricing expectations are different and hence demand a different strategy. The upcoming compact SUV that is slated to launch in 2028, as well as the mid-size SUV, will follow the revised strategy.

The carmaker also stated that it will focus on these two major categories: cars under four metres in length and mid-size vehicles. The company specifically mentioned that its upcoming models in India will be tailored to the Indian market, will come with redefined specifications, to better balance between performance and pricing. A key part of this strategy will be higher localisation. Honda said it will increasingly use local development resources and external partners to speed up product development. The automaker also stated that starting in 2027, it will begin introducing next-generation hybrid cars in key global markets, including India.

Check out Upcoming Cars in India 2026, Best SUVs in India.