Honda's ACE project to develop an Elevate-based global electric SUV
What's the story
Honda is gearing up to become an electric vehicle (EV) powerhouse with its latest project, 'ACE' (Asian Compact Electric).
It plans to create an Elevate-based electric SUV by 2026, with 50-70% of the units made in India at the automaker's facility in Rajasthan.
These EVs will be exported to major international markets, including Japan.
As per Honda, the project could potentially generate annual volumes of 100,000 units, with exports making up a significant portion.
Plans
Details on Honda Elevate-based EV and export plans
The Elevate-based EV, internally known as DG9D, is part of Honda's strategy to offer five SUVs in India by 2030 and use the country as an export hub.
Speaking with Autocar India, a Honda Cars India representative said, "As a policy, we cannot comment on any future product and its business strategy due to confidentiality."
To recall, the company had previously announced that its first EV would be an ICE-derived EV and would debut in two to three years.
Changes required
Retooling Tapukara plant and investment for EV production
At the 2023 Japan Mobility Show, Honda Cars India Ltd (HCIL)'s senior management confirmed that their Tapukara plant in Rajasthan will be retooled for EV production starting in 2024.
HCIL President and CEO Takuya Tsumura stated that increasing capacity is definitely in the works, and additional investment has been set aside for this new EV and future EVs.
He further added, "And our plan is to keep pushing forward our electrification."
Future
Made in India Honda EVs for export
The expanded production capacity will support both domestic sales and exports of the Elevate and the EV once production begins.
Toshio Kuwahara, President and CEO of Asian Honda Motor, highlighted the significance of India in Honda's global plans.
He said, "India is one of the key global hubs for exports for Honda in the future and India is one of the most important automotive markets for the Honda brand's future."