Japanese automotive major Honda Motor Co, has announced a strategic realignment of its electrification roadmap, responding to evolving global market conditions and regulatory landscapes.

In a recent business briefing, Toshihiro Mibe, Director, President and Representative Executive Officer (Global CEO), emphasised on the company's commitment to achieving carbon neutrality and zero traffic fatalities by 2050, while adapting to current challenges.

He reiterated that Honda's initial target to achieve 100 percent global sales of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) by 2040 remains unchanged. However, the company acknowledges a slower-than-anticipated adoption of EVs, particularly in the United States and Europe, due to relaxed environmental regulations and market uncertainties.

Conversely, hybrid-electric vehicles (HEVs) are experiencing increased demand, offering a practical solution for reducing CO2 emissions without the immediate need for extensive charging infrastructure.

Two-pronged strategy

To navigate these shifts, Honda has outlined two primary strategic directions:

• Enhancing EV and HEV Competitiveness: Honda aims to integrate intelligent technologies into its EV and HEV models, focusing on advanced driver assistance systems (ADAS) and connected services to deliver new value to customers.

• Reassessing Powertrain Portfolio: The company plans to diversify its powertrain offerings, balancing the development of EVs, HEVs and internal combustion engine (ICE) vehicles to meet varying regional demands and regulatory requirements.

Recognising the scale of investment required for electrification and intelligent technologies, Honda is exploring strategic partnerships, including ongoing discussions with Nissan and Mitsubishi Motors. While a full business integration is not currently planned, these collaborations aim to strengthen shared technological capabilities and market presence.

The Japanese automaker which had announced an ambitious plan to invest 10 trillion YEN towards establishing a robust EV value chain, exemplified by its planned battery-focused project in Canada. Now, the company has revised the CAPEX to 7 trillion YEN till 31 March 2031.

“As for EVs, due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30 percent. On the other hand, the demand for HEV models is high. Therefore, we will position our HEVs, mostly next-generation HEV models which we will introduce in 2027 onward, as a group of products that will play a key role during the transition period towards the popularisation of EVs,” said Mibe.

The company targets total automobile sales volume of 3.6 million units, with a HEV sales target of 2.2 million units by 2030.  

Two-wheeler sales

Honda Motor Co. announced that its global two-wheeler sales reached a record 20.57 million units for the FY2025, capturing approximately 40 percent of the global two-wheeler market. The company set new all-time sales records in 37 countries and territories, reinforcing its leadership position in the two-wheeler segment.

Looking ahead, Honda expects continued growth in global motorcycle demand, particularly across the Global South, with India – a key market with a growing population and rising income levels – at the forefront. Industry-wide sales are projected to increase from the current 50 million units to approximately 60 million by 2030.

To capitalise on this growth, Honda plans to introduce a broader range of two-wheelers tailored to the varied needs of global customers. It will also optimise its supply chain to ensure more efficient delivery of both internal combustion engine (ICE) and electric models.

As part of its commitment to environmental leadership, Honda is accelerating the electrification of its motorcycle lineup. This includes improving fuel efficiency in ICE models and expanding its range of flex-fuel compatible options.

In early 2025, Honda launched the Active e: and QC1 electric models in India. The CUV e: and ICON e:, designed as global electric commuter models, have already rolled out in Indonesia, Vietnam, Thailand and the Philippines, with plans to expand to Europe and Japan later this year.

In a major strategic move, Honda will begin production of electric motorcycles at a dedicated, high-efficiency plant in India starting in 2028. This facility will focus on modularised models developed exclusively for electric platforms, aiming to boost affordability and scalability in electric two-wheelers.

Through these initiatives, Honda aims to broaden access to electric motorcycles, ultimately targeting the top position in the global electric motorcycle market.

By continuing to launch competitive products and strengthening its supply chain for both ICE and electric vehicles, Honda is positioning itself for long-term profitability. The company aims to achieve a 50 percent global market share and a return on sales (ROS) exceeding 15 percent by fiscal year 2031.

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Accenture and Google Cloud have announced that Volvo Cars has signed on as the lead industry partner for Horizon, an open-source software development platform designed for car makers and automotive suppliers to build, test and deploy software on the Android Automotive Operating System.

The Horizon platform unifies cloud-native development tools, virtual testing environments and artificial intelligence workflows. Volvo Cars is migrating its global software development environment for the Android Automotive Operating System to the platform to accelerate engineering processes and virtual testing across its global development teams.

Insights gathered from Volvo Cars' deployment will be used by Accenture and Google Cloud to refine the platform and expand its generative artificial intelligence features for automotive and industrial manufacturers.

According to metrics provided by Accenture and Google Cloud, testing speeds using virtual Cuttlefish-based Android Automotive environments can improve by up to 9 times, while infotainment feature development costs can decrease by up to 40 percent. Software build times, which previously required up to two hours, can yield feedback within minutes through caching and build pipeline optimisation.

Remote access to virtual and physical device farms allows engineers to test software without requiring local physical test equipment, while virtual workbenches enable developers to set up development environments in seconds.

Gregor Zetsche, Head of Connected Experience, Volvo Cars, said, "We’re building some of the most complex products in the world, which requires a development environment built to match. As Horizon’s lead industry partner, we can directly solve our toughest engineering challenges and empower our teams to deliver new experiences faster than ever."

Juergen Reers, Global Automotive & Mobility Lead, Accenture, said, "Horizon enables a faster, more flexible and efficient way to deliver software-defined vehicle features. Its standardised, repeatable and scalable processes help deliver reliable, high-quality software products, while significantly reducing time to market. Horizon will allow Volvo Cars’ engineers to focus on what matters most: creating differentiated vehicle experiences and continuously delivering new value to drivers through software at high speed."

Henry Bzeih, Global Director for the Automotive Industry, Google Cloud, said, "Software now defines the automotive brand. Horizon on Google Cloud gives Volvo Cars the ability to move faster while releasing high-quality software and features on a cadence that matches the expectations of modern mobility. This is how next generation digital experiences reach drivers at agile speed."

Accenture and Google Cloud are working with additional automotive and industrial organisations to expand adoption of the Horizon platform across international markets.

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Emerson has announced the expansion of its test and measurement research and development (R&D) facility in Bengaluru, which it claims is an additional 50 percent.

The investment increases capacity at the site to develop software-defined and automated validation technologies for industrial customers.

The Bengaluru facility operates as Emerson's NI Software Centre of Excellence and represents the company's second-largest test and measurement R&D centre globally. Engineering teams at the site hold product responsibility for test software platforms, AI-enabled engineering capabilities, systems engineering technologies and radio frequency test software. The tools serve clients across the semiconductor, aerospace, defence, transportation, life sciences and manufacturing sectors.

Ritu Favre, President of Emerson's Test & Measurement business, said, "Bangalore plays an increasingly strategic role in Emerson’s global test innovation network. The site combines deep expertise in test software and AI-enabled engineering and validation technologies with close connections to rapidly evolving industries. This investment helps customers manage growing product complexity, streamline validation and bring new innovations to market faster."

The expansion provides capacity to advance automated validation workflows and integrated test platforms as hardware complexity increases across shortened product development timelines.

Emerson's investment aligns with domestic growth in semiconductors, electric mobility, and aerospace manufacturing driven by initiatives such as the India Semiconductor Mission and the National Electric Mobility Mission Plan.

Alongside the R&D centre, Emerson operates a second Bengaluru location dedicated to application engineering, calibration services, sales and customer support.

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Digital payment infrastructure company ToneTag has launched an in-car fuel payment system at the Global Fintech Fest 2026.

The solution is developed for TATA.CARS under the name DrivePay and integrates National Payments Corporation of India's UPI Circle framework for Internet of Things devices to enable direct fuel payments at IndianOil retail outlets.

The DrivePay platform integrates payment capabilities into connected vehicle infotainment screens. Drivers can simply pay at fuel stations from the vehicle dashboard without using mobile applications, physical cards, or external payment terminals.

The service also incorporates IndianOil’s XTRAREWARDS loyalty scheme, automatically crediting reward points to customer accounts without requiring mobile number inputs during checkout. Following the initial demonstration at GFF 2026, deployment will begin across IndianOil outlets ahead of a wider rollout.

Vivek Kumar Singh, Co-Founder and Director – Labs, ToneTag, said, "Payments are rapidly moving beyond traditional interfaces such as cards and smartphones, and connected devices are emerging as the next frontier for commerce. With DrivePay, powered by ToneTag, we are bringing an IoT-based UPI Circle payment experience directly into the connected vehicle. This initiative with IndianOil, TATA.CARS and NPCI demonstrates how payment infrastructure can seamlessly extend into connected devices, enabling the vehicle itself to become a secure payment interface. We believe this is an important step towards a future where mobility, payments and commerce are seamlessly connected."

The project combines IndianOil's retail distribution network, TATA.CARS' vehicle hardware, ToneTag's payment processing software and NPCI's UPI transaction network. ToneTag plans to extend its connected vehicle payment systems to additional automotive original equipment manufacturers and mobility providers.

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Hyundai Motor India, one of the leading passenger vehicle manufacturers, has introduced the Hyundai Bluelink Remote Immobiliser security feature for the Hyundai Venue and Venue N Line models.

The feature is available on the connected-car-Navigation-Cockpit equipped HX10 variant of the Venue and the N10 variant of the Venue N Line.

The security system allows vehicle owners to immobilise a parked car via the Hyundai Bluelink mobile application, preventing engine restart in scenarios involving key cloning or unauthorised access.

In cases of suspected theft, users can trigger the immobiliser remotely, locking the engine start capability once the ignition is turned off. The system operates alongside network-dependent live location tracking to assist vehicle recovery. For safety reasons, the software does not cut power or shut down an active engine while the vehicle is in motion.

The feature is being deployed via a Controller Over-the-Air update leveraging Hyundai's Software-Defined Vehicle (SDV) architecture. Eligible Venue and Venue N Line models sold since November 2025 will receive the update automatically without requiring physical service centre visits. The ccNC system allows over-the-air updates across up to 19 individual vehicle controllers.

Furthermore, From September 2026, the remote immobiliser will be standard equipment on HX10 and N10 variants, with plans for phased implementation across other Bluelink-enabled models.

Tarun Garg, MD and CEO, Hyundai Motor India, said, “With Hyundai Bluelink now powering over eight lakh connected vehicles in India, we continue to strengthen our connected mobility ecosystem by delivering meaningful innovations that address evolving customer needs. Hyundai Bluelink Remote Immobiliser offers customers greater control and peace of mind by enabling them to remotely secure their parked Hyundai VENUE or VENUE N Line and respond quickly in the event of suspected theft, while incorporating safeguards that prioritise customer safety. Importantly, this feature also demonstrates the future-ready potential of Hyundai’s Software-Defined-Vehicle architecture. Through a seamless Controller Over-the-Air update, we are introducing an important new capability to eligible model variants without requiring customers to visit a workshop.”

At present, Hyundai Motor India offers the Bluelink connected car system across 11 of its 15 vehicle lines in the country, providing functions including emergency crash notifications, vehicle diagnostics, remote telemetry and voice command controls.

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