The new entity will offer loans and leasing options to customers purchasing Honda’s motorcycles, cars, and related services, according to a statement.
The company said Honda Finance India will seek a Non-Banking Financial Company (NBFC) licence before commencing operations. With this step, Honda aims to strengthen its presence in India’s growing two-wheeler and passenger vehicle market, where financing options are increasingly shaping consumer purchases.
Until now, most financing needs for Honda’s customers in India have been met by local financial institutions. By setting up a dedicated arm, Honda plans to offer more tailored and flexible financing solutions while building stronger, long-term relationships with its customer base.
India becomes the ninth market worldwide where Honda has set up a local subsidiary for retail financing. The automaker already operates similar units in Japan, North America, and Europe.
Honda added that in the future, it will explore innovative financial services linked to software-defined vehicles (SDVs), leveraging vehicle data to enhance customer satisfaction and strengthen its global financial services business.