Kunal Behl, Vice President, Marketing and Sales, Honda Cars India Ltd, at a press conference in Chennai
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Honda Cars India is preparing to enter India’s highly competitive sub-4 metre SUV segment in 2028 as part of a broader strategy to regain market share.This reflects the structural shift in India’s passenger vehicle market, where compact SUVs have emerged as the fastest-growing category, Kunal Behl, Vice-President, Sales and Marketing, Honda Cars India Ltd, told businessline..“The sub-4 metre space was missing from our portfolio. It is important for us to be present in both SUV segments,” he said. Hatchbacks have been shrinking at a compound annual growth rate (CAGR) of around 4 per cent over the past five years, while sub-4 metre has grown by more than 20 per cent annually, he added.Electrification PushThe proposed compact SUV will be offered with multiple power train options, although Honda has not disclosed whether these will include petrol, hybrid or battery electric variants.Behl said Honda is also accelerating its electrification roadmap with plans for its first India-developed Battery Electric Vehicle SUV to be launched in the second half of the current financial year.Honda plans to offer petrol, hybrid and battery electric vehicles based on customer preferences while continuing to stay away from diesel, he said.On fresh manufacturing investments, Behl said the company’s Tapukara facility in Rajasthan, with an installed annual capacity of 1.8 lakh units, is currently operating at 60-70 per cent utilisation and caters to both domestic and export markets. The Japanese auto major will focus on improving utilisation through an expanded product portfolio before committing to additional capacity, he said.Fresh Investments“As demand grows, we will evaluate expansion options, but the first objective is to utilise the existing plant better,” Behl said, adding that the company is evaluating multiple expansion options without specifying a utilisation threshold for fresh investments.Honda has lined up six launches during the current calendar year, including the new electric SUV. The broader product offensive is aimed at boosting plant utilisation and strengthening the company’s position in India’s evolving passenger vehicle market, said Behl.Tamil Nadu contributes nearly 12 per cent of the overall domestic sales for Honda. While the State ranks sixth nationally in passenger vehicle sales, it is Honda’s largest market, driven by a higher preference for petrol-powered and automatic transmission vehicles. The company has a warehouse for spare parts in the State but no immediate plans for manufacturing.Published on July 13, 2026
