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Honda Launches Finance Arm in India to Boost Vehicle Sales

Wednesday, 20 August 2025, 12:29 IST
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  • Honda has set up a new company, Honda Finance India, to offer loans and lease options for its vehicles.
  • The move aims to tap into India’s growing demand for two-wheelers and cars purchased through financing.
  • The company will apply for an NBFC license before beginning operations.

Honda Motor Co. has launched a new financial services company in India Honda Finance India Private Ltd., to offer retail financing options to its customers. The subsidiary will provide loans and leasing services for Honda motorcycles, cars, and related services, helping more customers afford Honda vehicles.

With India’s twowheeler and passenger car markets expected to grow steadily, more customers are opting for loans to finance their purchases. So far, local banks and financial institutions have led this space. Now, Honda plans to strengthen its presence by offering its own flexible financing solutions directly.

The company will apply for a Non-Banking Financial Company (NBFC) license in India, a required step to start offering these services. Once approved, Honda Finance India will begin supporting vehicle and service sales across the country.

India is now the ninth country where Honda operates a dedicated finance arm, following regions like Japan, North America, and Europe. The company says its goal is to build long-term relationships with customers by tailoring finance options to local needs.

Also Read: Burson as New Strategic Communications Partner: Honda Cars India

Looking ahead, Honda also plans to explore innovative financial services tied to software defined vehicles (SDVs), aiming to enhance the customer experience using vehicle data. These efforts are part of Honda’s global strategy to expand its financial services and boost customer satisfaction worldwide.