EXCLUSIVE: Cost pressures and deadlock force Honda to rework India strategy, sources say

Honda is being forced to rethink its India strategy after cost pressures and an internal supplier-selection deadlock, according to two sources. The Japanese automaker expects EV-related losses to exceed $12 billion and is pivoting toward gasoline-electric hybrids while cutting spending. Reuters previously reported Honda seeks to reduce costs by more than $9 billion over four years and has asked suppliers to sharply lower prices. In its new India partnership with Tata Technologies, Honda targets up to 20% cost reductions and halving development times from about five years. The move followed disagreements between Japanese and Indian managers over whether to rely on established or more local suppliers.