Honda Motor has outsourced development of a new vehicle programme to Tata Technologies, Bloomberg reported, citing unnamed sources.
This marks the first time the Japanese automaker has entrusted an Indian engineering services firm with building an end-to-end vehicle platform, as part of efforts to cut costs.
The platform is expected to underpin multiple car models and will be built to accommodate both conventional fossil fuel-powered vehicles and electrified powertrains for hybrids and electric vehicles, according to the sources.
They did not specify which markets the Tata-engineered vehicles might be sold in.
A Honda spokesperson said in an email to Bloomberg that the company “is always considering the possibility of various external partnerships as part of its efforts to strengthen its competitive edge”, while declining to comment on market speculation or specific partnership details.
Just Auto has contacted Tata Technologies for a comment.
The arrangement marks a shift for Honda, which has generally kept development of core vehicle platforms largely in-house or within its established supplier network.
It comes as the automaker overhauls its product roadmap following its first annual loss since its founding in 1948.
The Japanese automaker reported a 2.2% drop in global revenues to Y21.79tn ($138bn) for the last fiscal year (FY25-26), which ended in March 2026.
It recorded an operating loss of Y414.3bn, against an operating profit of Y1.21tn the previous fiscal year, with a net loss of Y423.9bn following a net profit of Y835.8bn previously.
Honda attributed its first operating loss to substantial accounting charges and restructuring costs tied to the overhaul of its battery electric vehicle (BEV) strategy in the US, where it cancelled several new models slated for production by the end of the decade amid weakening demand following policy changes under the Trump administration.
However, in the first quarter of FY26-27, Honda's operating profit surged 117.4% year-on-year to Y530.76bn ($3.36bn), as the prior year's EV-related losses did not recur.
