Honda Cars India is strategically advancing its position in the electric vehicle (EV) segment with its upcoming project, known as Project ACE (Asian Compact Electric). As part of this initiative Honda is set to introduce an Electric Vehicle based on the Elevate SUV marking its foray into battery electric mobility. Here are the key insights:
Project ACE Overview
- Honda Project ACE aims to launch five new SUVs by 2030 aligning with the evolving automotive landscape and the growing demand for SUVs in the Indian market.
- Elevate, the first SUV under Project ACE, will serve as the foundation for the upcoming Battery Electric Vehicle (BEV).
Elevate-Based BEV
- The BEV, codenamed DG9D, is expected to utilize the design and platform of the Elevate SUV.
- This marks Honda's direct entry into the BEV segment, bypassing the hybrid phase, and reflects the company's commitment to electric mobility.
Market Competition and Positioning
- Positioned in the competitive compact SUV segment, the Elevate-based BEV will face rivals such as Hyundai Creta, Kia Seltos, Volkswagen Taigun, and others.
- Honda envisions exporting the BEV globally, including markets like Japan, leveraging the capabilities of its manufacturing plant in Tapukara, Rajasthan.
Manufacturing and Export Strategy
- Honda plans to retool its manufacturing plant in Tapukara, Rajasthan, starting in 2024, to accommodate EV production.
- The company is keen on exporting the Elevate-based BEV anticipating a significant increase in production capacity and capital investment.
Launch Timeline and Sales Projections
- The Electric Iteration of the Elevate is expected to launch by 2025-26, contributing to Honda's global EV portfolio.
- With an estimated production volume of around 1 lakh units per year the BEV targets global markets emphasizing international exports.
Expansion of EV Portfolio
- Honda's move to directly launch BEVs underscores its commitment to electric mobility, and the Elevate-based EV is poised to capture a substantial market share.
As Honda gears up for the launch of the Elevate-based BEV under Project ACE the company is anticipated to reveal more details in the coming months providing a comprehensive outlook on its electric vehicle strategy.