Honda Cars India is set to revolutionize the automotive landscape with its ambitious project ‘ACE,’ short for ‘Asian Compact Electric.’
This initiative is poised to transform India into a hub for electric vehicles (EVs) by 2026. Reports suggest that nearly 50-70 percent of the vehicles produced under the ACE project will be exported to key global markets, including Japan.
Elevate-Based EV leading the ACE Project
At the core of the ACE project is an innovative Elevate-based EV, currently codenamed DG9D. This electric SUV, with a potential annual volume of 1 lakh units, is part of Honda’s strategic plan for future models in the Indian market. While specifics remain confidential, insiders indicate that discussions are underway regarding this groundbreaking EV.
Honda’s Commitment to EV Portfolio Expansion
During the launch of the all-new Elevate, Honda outlined its vision to have a comprehensive portfolio of five SUVs in India by 2030. The company also announced India’s pivotal role as an export hub for its future endeavors.
As part of this commitment, the first EV, based on the Elevate platform, is anticipated to debut within the next two to three years. Much like its competitor, the Hyundai Creta EV, the Elevate-based EV will undergo a transformation from an internal combustion engine (ICE) vehicle to a derived EV.
Setting the Stage for EV Production
Senior management at Honda Cars India has confirmed plans to retool the Tapukara plant in Rajasthan for EV production, with activities commencing in 2024. This move aligns with the expected surge in export volumes, prompting potential additional investments in the country, including capacity expansions.
Increased Production Capacity
While the current plant boasts available capacity for new model lines, Honda Cars India’s President and CEO, Takuya Tsumura, affirms an imminent increase in capacity. The prospect of a second plant remains a consideration for the future, depended upon achieved volume of sales.
Strategic Investments for Future EVs
Honda, while not specifying the exact amount, confirms additional investments for the new EV and future electrified models. Tsumura emphasizes the brand’s commitment to pushing forward with electrification, reflecting their dedication to staying at the forefront of the evolving automotive landscape.
India: A Key Player in Honda’s Books
India’s significance in Honda’s global export strategy cannot be undermined. Toshio Kuwahara, President and CEO of Asian Honda Motor, highlighted India as a key hub for exports during the global premiere of the Elevate SUV.
This strategic move improves India’s importance in Honda’s future plans, with expectations of contributing to a substantial increase in export volumes.
Doubling Exports
Reports suggest that Honda’s exports from India are projected to double by 2025. With the ACE project in the pipeline, the share of overseas volumes from India could surge to about 30-40 percent of the total output.
Elevate’s Journey to Japan
The Honda Elevate is slated for a spring 2024 launch in Japan under the brand name WR-V. This move marks a historic moment for Honda Cars India Ltd (HCIL) as the model will be manufactured in India and exported to Japan.
This strategic shift reflects the robust manufacturing capabilities of Honda’s Indian operations and reinforces the vision of making the country a key export hub in Honda’s global business.