Honda Cars India is set to undergo a significant transformation with its new project, named ACE (Asian Compact Electric), positioning itself as a hub for electric vehicles (EVs). The ACE project, expected to be ready by 2026, aims to export 50-70 percent of its EVs, including a model with the codename DG9D, to key global markets, emphasizing Japan.
Elevate-Based EV Details
The Elevate-based EV, coded DG9D, has a potential annual volume of 1 lakh units and is part of Honda’s strategic plan for future models in the Indian market. The vehicle, an ICE-converted derived EV, is set to launch within the next two to three years.
Production and Investment Plans
Honda Cars India plans to retool its plant in Tapukara, Rajasthan, for EV production starting in 2024. The company may consider additional investments in India, including capacity expansion, to meet the expected export volumes. While specific investment figures haven’t been disclosed, Honda has affirmed its commitment to further electrification and the launch of multiple EVs in the coming years.
Global Role of India in Honda’s Strategy
The increased production capacity not only caters to domestic sales but positions India as a global export hub for Honda’s EVs. Toshio Kuwahara, President and CEO of Asian Honda Motor, highlighted India’s significance in Honda’s global scheme during the Elevate SUV’s global premiere in June. The ACE project is expected to boost Honda’s exports from India, potentially constituting 30-40 percent of the total output.
Elevate’s Global Presence
The Elevate SUV, manufactured in India, is scheduled to debut in Japan in spring 2024 under the name WR-V. This move underscores India’s manufacturing capabilities and aligns with Honda’s vision of making the country a key export hub.
In summary, Honda’s ACE project signals a strategic shift towards EVs, with India playing a pivotal role as a global production and export hub for Honda’s electrified future.