Key highlights
- Honda’s new platform development is outsourced to Tata
- This is the first time in the history of Honda to outsource development
- New platform will house multiple models and powertrains
Ever since Honda came into existence in 1948, the carmaker has been solely developing new technologies and cars in-house. However, the recent losses were not only the first in the brand’s history of car production, but have also pushed the brand to take new measures to remain profitable and competitive in the rapidly changing environment.
As per the latest report published by Bloomberg, Honda has outsourced the development of its new platform to Tata Technologies. This marks a major shift in the brand’s car development strategy that has been oriented in-house for decades.
The report also states that this new platform will house multiple models in the future. Moreover, it will be developed to accommodate multiple powertrains like petrol, hybrid, plug-in hybrid, range-extender, and pure electric.
Honda has not confirmed this news yet, but the brand’s spokesperson did claim that the carmaker is exploring new partnerships to strengthen its future. The primary reason behind this collaboration is cost-cutting, which the brand is currently undergoing at full pace.
The recent losses have pushed the management to undergo a radical change. Therefore, Honda is now outsourcing the development to keep the costs in check.
Moreover, the company has already shelved its new projects that included a new brand called Afila, which was co-developed with Sony. In fact, Afila EV was set to hit production later this year in the US, and it would have competed with rivals like Tesla and BYD.
The losses not only hit such projects, but the brand has undergone a massive strategy change. Not long ago, Honda officially accepted that it is losing the race due to its strategic decisions, and intends to change this soon.
Also read: Rumour: Europe to get Skoda Kylaq with 1.5-litre TSI soon
