Honda is mulling a battery production factory in India
In an indication that Honda has preparations underway for India’s electric car push, the Japanese automaker is reportedly mulling the option of a battery production facility in the country. The move hints at Honda’s efforts to introduce an all-electric vehicle.
India -- Honda’s fourth biggest market -- is hoping to stop ICE car sales by the year 2030. Indian government has announced support for electric vehicles but on the policy front, little has been done in order to promote electric vehicles. India has high taxes for import of cars and the local automobile companies are still not manufacturing electric vehicles in India. Indian consumers are cost conscious and adding a few affordable cars in the electric vehicle segment in India can register strong demand.
The reports about Honda planning a battery factory in India come within months of the earlier-this-year announcements of joint projects by Japanese companies Suzuki, Toshiba and Denso in India, for the purpose of producing batteries for electric vehicles (EVs) in the country.
In relation to Honda’s apparent plans for a battery factory in India, latest unofficial reports have revealed that it is pertinent for Honda Cars India to first identify the kind of cars for which it requires electrified versions. Moreover, since Honda does not produce batteries, the automaker would also have to involve another company for its battery-manufacturing endeavours in India. But, as of now, there is no official information on that account.
According to a disclosure by an unnamed source familiar with the developments at Honda, the automaker’s potential battery-production initiatives were discussed recently at the Honda India board meeting. Further adding that a decision by the automaker is “imminent,” the source said: “The parent firm is also actively involved in devising Honda’s electric vehicle strategy for the Indian market.”
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