The rapid growth of the Indian car market presents a lucrative opportunity for automakers to tap into the country's evolving automotive landscape.
The context? India has emerged as the third-largest auto market globally, surpassing Japan in terms of vehicle sales. In the fiscal year that ended in March, a total of 4.85 million vehicles were sold, according to the Society of Indian Automobile Manufacturers. However, the EV market only sold 37,792 units in 2022.
Now, Honda Motor is gearing up for a strategic entry into the electric vehicle (EV) market in India within the next three years, as part of its global strategy to have only EVs and fuel cell vehicles account for all its new-vehicle sales by 2040.
But, Honda's proposed entry will not be met without a fight from local competitors already dominating the EV market. For example, leading Indian automaker, Tata Motors, currently commands an impressive 90% market share in the local EV segment.
Meanwhile, Suzuki which already holds a substantial 41% share of the overall passenger vehicle market has also revealed its plans to introduce an EV in India by the end of the fiscal year in March 2025.
The presence of these formidable competitors underscores the intense competition that Honda will face as it ventures into the Indian EV market.