Honda has reportedly decided to outsource part of the vehicle platform development for its new vehicles to India’s Tata Technologies. The move is intended to advance the division of labor while halving development costs.
Honda plans to fully entrust Tata Technologies of India with the development of the basic architecture of the vehicle platforms for its new vehicles. The move is intended to reduce costs and accelerate development as Honda reforms its operating structure as a full-fledged automaker.
Tata Technologies has turnkey capabilities spanning vehicle planning, virtual-environment simulation, prototyping, and the integration of electrical and electronic systems. It is actively taking on outsourced automotive development projects, drawing on its advanced digital capabilities in the SDV field.
Honda explicitly set out its policy of strengthening the use of external resources in its 2026 Business Update. While partially reviewing the rollout of EVs for North America, it has adopted a strategy of reallocating resources to internal-combustion engines, hybrids, and software development.
At the same time, Honda has indicated that it plans to fully adopt vehicle platforms manufactured by Guangzhou Automobile Group, and is moving to extend its joint venture agreement with the group through 2038 in July 2026. This will support the development of standardized components and a low-cost operating structure for the Asian market.