Honda establishes new retail financing subsidiary in India

THEBUSINESSBYTES BUREAU

TOKYO, AUGUST 20, 2025

Honda Motor Co., Ltd. has announced the establishment of Honda Finance India Private Ltd., a wholly owned subsidiary that will provide retail financing solutions, including loans and lease options, for Honda motorcycles, automobiles, and related services in India.

With India’s motorcycle and automobile markets poised for further growth and an increasing number of customers opting for loans to purchase vehicles, Honda aims to strengthen its local presence by offering in-house financing. Until now, such services in India have largely been provided by local financial institutions.

Honda Finance India will apply for a Non-Banking Financial Company (NBFC) license, following which it will commence operations to support customers in financing their vehicle purchases.

Financial services have long been a core pillar of Honda’s global strategy, with dedicated subsidiaries already operating in markets such as Japan, North America, and Europe. With this new entity, India becomes the ninth country where Honda has established a local financial services subsidiary.

Honda said the new venture will focus on building long-term relationships with customers by offering flexible financing solutions tailored to regional needs. Looking ahead, the company is also exploring innovative financial services linked to the global expansion of software-defined vehicles (SDVs), leveraging vehicle data to enhance customer satisfaction and overall ownership experience.