Honda outsources new vehicle program to Tata Technologies to cut costs

Honda has outsourced development of a new vehicle program to Tata Technologies, people familiar with the matter said, the first time the automaker is entrusting an Indian engineering services firm with building an end-to-end platform to help cut costs.

This platform is expected to support multiple car models, the people said, asking not to be identified as the details are private. It is intended to accommodate conventional fossil fuel-powered models as well as electrified powertrains for hybrids and electric vehicles, the people added. They did not specify the markets where these Tata-engineered vehicles might be sold.

The farming out of this crucial function marks a departure for Honda, which has typically kept development of core vehicle platforms largely in-house or within its established supplier network. It comes as the Japanese automaker overhauls its product roadmap after reporting its first annual loss since its founding in 1948, shelving several planned electric vehicle programs and accelerating cost-cutting efforts.