Honda is working with Tata Technologies on India-market vehicles, seeking to reduce development costs by about 20% and cut a roughly five-year development cycle in half, Reuters reported. Honda will retain control of core technology and quality while the engineering firm supports local development.

Sources described internal supplier disagreements as one reason for the new approach, a characterisation Honda disputed. The automaker's Indian passenger-vehicle share has fallen to about 1.3% from 7.3%, and its first sub-four-metre SUV is expected in 2028.

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