Japanese automotive major Honda Motor Co, has announced a strategic realignment of its electrification roadmap, responding to evolving global market conditions and regulatory landscapes.

In a recent business briefing, Toshihiro Mibe, Director, President and Representative Executive Officer (Global CEO), emphasised on the company's commitment to achieving carbon neutrality and zero traffic fatalities by 2050, while adapting to current challenges.

He reiterated that Honda's initial target to achieve 100 percent global sales of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) by 2040 remains unchanged. However, the company acknowledges a slower-than-anticipated adoption of EVs, particularly in the United States and Europe, due to relaxed environmental regulations and market uncertainties.

Conversely, hybrid-electric vehicles (HEVs) are experiencing increased demand, offering a practical solution for reducing CO2 emissions without the immediate need for extensive charging infrastructure.

Two-pronged strategy

To navigate these shifts, Honda has outlined two primary strategic directions:

• Enhancing EV and HEV Competitiveness: Honda aims to integrate intelligent technologies into its EV and HEV models, focusing on advanced driver assistance systems (ADAS) and connected services to deliver new value to customers.

• Reassessing Powertrain Portfolio: The company plans to diversify its powertrain offerings, balancing the development of EVs, HEVs and internal combustion engine (ICE) vehicles to meet varying regional demands and regulatory requirements.

Recognising the scale of investment required for electrification and intelligent technologies, Honda is exploring strategic partnerships, including ongoing discussions with Nissan and Mitsubishi Motors. While a full business integration is not currently planned, these collaborations aim to strengthen shared technological capabilities and market presence.

The Japanese automaker which had announced an ambitious plan to invest 10 trillion YEN towards establishing a robust EV value chain, exemplified by its planned battery-focused project in Canada. Now, the company has revised the CAPEX to 7 trillion YEN till 31 March 2031.

“As for EVs, due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30 percent. On the other hand, the demand for HEV models is high. Therefore, we will position our HEVs, mostly next-generation HEV models which we will introduce in 2027 onward, as a group of products that will play a key role during the transition period towards the popularisation of EVs,” said Mibe.

The company targets total automobile sales volume of 3.6 million units, with a HEV sales target of 2.2 million units by 2030.  

Two-wheeler sales

Honda Motor Co. announced that its global two-wheeler sales reached a record 20.57 million units for the FY2025, capturing approximately 40 percent of the global two-wheeler market. The company set new all-time sales records in 37 countries and territories, reinforcing its leadership position in the two-wheeler segment.

Looking ahead, Honda expects continued growth in global motorcycle demand, particularly across the Global South, with India – a key market with a growing population and rising income levels – at the forefront. Industry-wide sales are projected to increase from the current 50 million units to approximately 60 million by 2030.

To capitalise on this growth, Honda plans to introduce a broader range of two-wheelers tailored to the varied needs of global customers. It will also optimise its supply chain to ensure more efficient delivery of both internal combustion engine (ICE) and electric models.

As part of its commitment to environmental leadership, Honda is accelerating the electrification of its motorcycle lineup. This includes improving fuel efficiency in ICE models and expanding its range of flex-fuel compatible options.

In early 2025, Honda launched the Active e: and QC1 electric models in India. The CUV e: and ICON e:, designed as global electric commuter models, have already rolled out in Indonesia, Vietnam, Thailand and the Philippines, with plans to expand to Europe and Japan later this year.

In a major strategic move, Honda will begin production of electric motorcycles at a dedicated, high-efficiency plant in India starting in 2028. This facility will focus on modularised models developed exclusively for electric platforms, aiming to boost affordability and scalability in electric two-wheelers.

Through these initiatives, Honda aims to broaden access to electric motorcycles, ultimately targeting the top position in the global electric motorcycle market.

By continuing to launch competitive products and strengthening its supply chain for both ICE and electric vehicles, Honda is positioning itself for long-term profitability. The company aims to achieve a 50 percent global market share and a return on sales (ROS) exceeding 15 percent by fiscal year 2031.

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Tata Consultancy Services, a leading IT services, consulting and business solutions company, has further expanded its capabilities in the rapidly evolving Software-Defined Vehicles (SDV) space with the addition of three new engineering centres in Europe. This marks the firm’s long-term strategy to strengthen its end-to-end automotive software capabilities, chip-to-cloud technologies and services.

The company has set up two new Automotive Delivery Centers in Germany – located in Munich and Villingen-Schwenningen as well as an engineering centre in Romania.

The German facilities the company shared will support automakers in developing and deploying TCS’ software-driven services that cater to autonomous driving, infotainment, safety systems and connected vehicle technologies. On the other hand, the Romanian facility will focus on designing and building advanced automotive software platforms to support early-stage development and innovation.

The new facilities will enable close collaboration with OEMs in Europe and global automotive enterprises.

At present, the company has onboarded over 100 professionals in Europe who will work together with more than 2,000 SDV Engineers across TCS global locations. This diverse and global talent pool will enable the development of next generation automotive platforms for digital cockpits and infotainment, advanced driver assistance systems (ADAS), and other critical SDV functions — supporting the full product lifecycle from concept and development to production and post-launch support.

Regu Ayyaswamy, Senior Vice-President & Global Head, Internet of Things (IoT) and Digital Engineering at TCS, said, “These new centres will position TCS at the forefront of automotive innovation, enabling us to deliver state-of-the-art solutions in autonomous driving and advanced cockpit systems. This expansion reaffirms our commitment to leading the transformation in the Software-Defined Vehicles space.”

Anupam Singhal, President and Business Group Head, Manufacturing, TCS, said, “The shift to software-defined vehicles marks a defining moment for the automotive industry. With the launch of these new centres, we are deepening our commitment to support OEMs in building the next generation of intelligent, connected, and sustainable vehicles. This expansion is a key milestone in our journey toward Future-Ready Mobility — where software, engineering and design, backed by AI, converge to deliver safer, more personalised and continuously enriching experiences for drivers and passengers.”

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has announced the winners of the 9th Cohort of its flagship Accelerator program.

The winners include six Indian startups: Frinks AI, mistEO, Adagrad, Com Olho, ProSolvr and Eligere and three German startups: Caire AI, Syn2Core and Talonic, under the newly introduced Global Startups category. This marked the first global cohort where a total of 19 startups from India and 7 from Germany participated to showcase their ideas/solutions across domains such as AI, cybersecurity, road safety, quality control, EV charging infra and battery swapping among others.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “Startups bring fresh thinking and new ideas. Through the Maruti Suzuki Accelerator program, we have been working with them to co-create future-ready solutions that enhance customer experience and drive operational efficiency in the automobile manufacturing and mobility space. The participation of global startups, this cohort onwards, marks a new milestone in this journey. It further supports our efforts to contribute meaningfully to ‘Make in India’ and ‘Startup India’ initiatives of the Government. We welcome the winning startups to join us in our mission to offer ‘Joy of Mobility’ to as many people as possible.”

Launched in January 2019, Maruti Suzuki India in the last six years, has screened over 5,000 startups, engaged with 150 startups and onboarded 25 startups partners.

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Shanghai-headquartered Inceptio Technology, a developer of autonomous truck technologies, has joined the Autoware Foundation, a global open alliance for autonomous driving tech.

As part of the understanding, Inceptio will collaborate with members of Autoware Foundation to advance innovation and accelerate the deployment of safe, scalable autonomous truck technologies.

Inceptio's technology portfolio covers L4, L3 and L2+ autonomous driving capabilities. It will leverage its proprietary full-stack Inceptio Autonomous Driving System - which features long-range perception, high-precision tractor and tailer control, fuel-efficient driving algorithm, as well as HPC specifically designed for truck's operating condition. This it shared improves safety, fuel efficiency and operational cost. Using data-driven R&D platform continuously refines core modules in real time, enabling rapid deployment and optimisation of autonomous truck technologies across diverse use cases in trucking.

Launched in 2018, the Autoware Foundation is a non-profit organisation dedicated to supporting open-source collaboration that accelerates the development of autonomous driving technology globally. It counts the likes of Tomtom, Robosense, NXP, Huawei, Hitachi, Capegemini, Foxconn, AMD and Amazon Web Services amongst its members.

Inceptio, on its part, was amongst the first to have launched the industry's first series production autonomous trucks in late 2021. Till date, Inceptio Autonomous Driving System is claimed to have has achieved over 200 million kilometres of commercial operations.

Shinpei Kato, Founder and Fellow, Autoware Foundation said, "We are excited to welcome Inceptio Technology to the Autoware Foundation. Inceptio's proven track record in autonomous trucking and deep industry and production expertise will be invaluable as we work together to build the next generation of autonomous mobility solutions for the trucking industry."

Inceptio will actively participate in the Autoware Foundation initiatives by contributing technology and use cases, exploring new applications, and forging global partnerships.

Julian Ma, Founder & CEO, Inception Technology, added, "We look forward to collaborating with a global open-source community of innovators to accelerate the development of autonomous driving technologies and extend the community's reach deep into truck segment. Our extensive experience in series production and insight from world's largest commercial deployment of autonomous truck uniquely position us to contribute to the Autoware Foundation, driving safer and more efficient logistics worldwide."

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Tata Elxsi, a global leader in design and technology services has signed a Memorandum of Understanding with Infineon Technologies, a leading semiconductor solutions company, to jointly develop application-ready electric vehicle solutions tailored to the Indian market.

The partners will collaborate on design and integration expertise to drive faster adoption of automotive-grade, cost-efficient and safety-compliant subsystems across key mobility segments. This collaboration, the partners stated, aligns with India’s rapid shift towards electrification, with EV sales growing by 25–30 percent year-on-year in 2024, including a 28 percent increase in electric two- and three-wheeler sales.

As part of the understanding, Tata Elxsi will bring its design, system integration and validation capabilities, while Infineon will provide early access to its latest semiconductor technologies – such as silicon carbide (SiC)-based components, microcontrollers and integrated circuits (ICs).

The partners will work closely to develop high-voltage inverters for traction and auxiliary systems, scalable battery management systems (BMS), bi-directional onboard chargers and high-voltage thermal management solutions for the Indian market targeting two-wheeler, three-wheeler, passenger vehicles and commercial vehicle segments. In future, they also look to support eVTOL, energy and off-highway sectors.

Nambi Ganesh, Head – Automotive, Tata Elxsi, said, “Currently, several of our EV solutions are already built on Infineon SoCs and components. This MoU further strengthens our partnership by giving us a clearer scope and tighter system-level alignment, enabling shorter turnaround times to address Indian market requirements. As EV adoption scales, our focus remains on delivering production-ready, automotive standards-compliant platforms and solutions.”

Kenneth Lim, Senior Vice-President – Automotive, Infineon Technologies Asia Pacific, said, “At Infineon, we are committed to driving innovation in the electric vehicle sector and empowering our partners to bring cutting-edge technologies to market. This partnership with Tata Elxsi is a significant step in our journey to support India’s ambitious electrification goals. By combining Tata Elxsi's design and integration expertise with our advanced semiconductor solutions, we are not only enhancing the development of ready-to-deploy EV systems but also ensuring that they meet the highest safety and performance standards. Together, we aim to accelerate the adoption of electric mobility across various segments, from two-wheelers to commercial vehicles, and contribute to a more sustainable future for India.”

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