Honda Cars India, the wholly owned subsidiary of the Japanese automaker Honda is considering setting a research and development subsidiary in India to develop new affordable cars using local components. The new R&D facility is expected to be a part of the carmaker’s Greater Noida manufacturing unit.
The research and development unit under the name Honda Genbetsu India is expected to be set up with an initial investment of Rs 500 crore. The facility will also enable the carmaker to implement its localization strategy for the India car market which it plans to extend to its existing car models in India in addition to the new upcoming India specific cars.
After the launch of its new diesel engine in India as part of the Amaze compact sedan, the carmaker is in the process of revamping its plans and strategy for the Indian auto market. The automaker now plans to introduce the diesel engine in other car models such as the new Mobilio multi-purpose vehicle and the new Jazz premium hatchback.
Since the Indian market is a small car oriented market, the carmaker is focusing on developing smaller cars. The new research and development facility will enhance its plans of localization as well as developing diesel engines for small cars.
