Honda’s Kunal Behl maps out India strategy: EV push, youth focus and stronger tier-3 expansion

Kunal Behl serves as the Senior Vice President –Sales and Marketing at Honda Cars India Ltd. (HCIL), bringing over two decades of experience in the automotive industry. Since joining Honda in 2002, he has played a pivotal role across several key verticals including Field Sales, Network Development, Sales Planning, Exports, and New Business Development.

His deep understanding of market behaviour, customer expectations, and dealer operations has contributed significantly to Honda’s sustained presence and performance in India.

Behl is widely recognised for his strong customer-centric approach and his ability to translate evolving consumer preferences into effective product and marketing strategies. He, in an interaction with Bizz Buzz, revealed how he is instrumental in strengthening Honda’s brand positioning, driving the adoption of advanced safety technologies, and enhancing the company’s premium vehicle portfolio.

His leadership has also supported the expansion of Honda’s nationwide dealer and service network, ensuring a seamless ownership experience for customers

The mid-size SUV segment is crowded. How is Honda Elevate positioned within it?

The segment has over 25 models, but we have a strong performance in the petrol market. Petrol now contributes about 38 per cent of the segment, and we hold nearly 5 per cent market share. Customers who seek quality, durability, space and driving performance prefer us.

The EV share in SUVs over 4 metres has grown significantly—from 2 per cent last year to 11 per cent this year. That’s why we are launching the Honda 5R. Elevate remains a strong contender for customers prioritising overall driving experience.

What is driving Elevate’s automatic transmission demand?

In SUVs above 4 metres, segment-wide automatic penetration is about 40 per cent. But Elevate’s CVT—our highly refined Continuously Variable Transmission—has a 60 per cent share nationally.

In Telangana, CVT share is 72 per cent, which is a major selling point.

Can we expect a hatchback from Honda?

The hatchback segment has been shrinking. In the last five years, both lower and mid-hatch categories have declined.

Lower hatch is down 40 per cent this year, while the hatch segment is down 7–8 per cent. India is maturing as a market, and customers now prefer higher-quality cars with better driving performance. Hence, our model strategy begins from the entry SUV/electric space and grows upward.

Will Honda City get an EV version?

Honda globally aims for carbon neutrality by 2050. By 2030, one-third of our volumes will be electrified, including EVs, hybrids and petrol models. The next-generation hybrid will launch globally in 2027. We are working on improving productivity, efficiency and reducing hybrid system cost.

City is already the strongest hybrid performer in its sedan segment. We will continue improving its hybrid system, and Zero Alpha (Honda’s new EV) will also come to India.

The Elevate has received cosmetic upgrades. Are there technical changes too?

The new Elevate is a refreshed generation with changes beyond the exterior.

We have added: Alpha Gold grille; New interior trims; Beige, ivory and black interior options (Adventure Edition gets black with orange inserts); Orange accents across exteriors and interiors; New ambient light band across the dashboard; Engine and driving dynamics remain unchanged.

Has the Elevate crossed the 1 lakh sales milestone? How many units were sold last quarter?

Yes, we have crossed 1 lakh units. Approximately 5,600 units.

What is the contribution of Telangana to your sales?

Telangana contributes 5 per cent to our national volume, up from 4.5 per cent last year. Hyderabad is our fifth-largest market.

How many outlets does Honda have in Telangana and will you add more?

Telangana has 12 outlets, of which 6 are in tier-3 towns. Nationally, we have 295 outlets in 214 cities, with 165 in tier-3 towns. We are adequately placed but will expand wherever we see demand.

What is Honda doing to address EV range anxiety?

We are building a robust charging network ahead of the EV launch next fiscal. We are partnering with multiple Charging Point Operators (CPOs) to ensure customers do not face range issues.

Who are the target customers for the upcoming EV?

Primarily the youth. They want performance, refinement and fun-to-drive characteristics. Our CVT adoption and driving dynamics align closely with these expectations.

What is the manufacturing readiness for EVs?

Our Tapukara plant has a 150,000-unit capacity and we are making the production line ready for EV manufacturing.

How important are tier-2 and tier-3 markets for Honda?

Very crucial. 32 per cent of sales come from tier-3 towns; 30 per cent from tier-2 towns

We are present in 165 tier-3 cities and are expanding based on market dynamics.

Which customer segments are driving growth?

Youth customers. Our design upgrades, like the Elevate Adventure Edition, are aimed at attracting younger buyers.

How is the dealership role evolving in a digital era?

We follow a hybrid model: strong digital presence for information and discovery, combined with physical dealerships for test drives, paperwork and after-sales service. After-sales cannot happen digitally, so dealerships remain critical.

What is the AP–Telangana dealership distribution?

Telangana: 12 outlets (6 in tier-3 towns); Andhra Pradesh: 14 outlets (11 in tier-3 towns)

Total: 26 outlets, with 17 in tier-3 towns.

What feedback have customers shared on Elevate, and what updates were added?

Customers appreciate its space, comfort and strength. Updates include: Alpha Gold grille, Orange-themed interiors/exteriors, Leather seats with orange stitching, Dashboard-wide ambient lighting and Engine and performance remain unchanged.

What do youth buyers typically expect?

CVT driving experience; Fun-to-drive dynamics; ADAS and 360-degree camera; Sporty styling

These elements are integral to Elevate.

Why does Honda have a limited product portfolio in India?

The industry is evolving with EVs, hybrids, CNG and new technologies. We align with Honda’s global direction—bringing petrol, next-gen hybrid and EVs to India. Honda 2Wheelers is already India’s No. 2 and may soon reach No. 1, making India a crucial market for Honda globally.

Any plans for a manufacturing unit in Telangana?

Currently, we want to fully utilise the Tapukara plant’s 180,000-unit capacity. Future expansion is possible based on feasibility studies.

What is the current capacity utilisation?

Around 65–70 per cent.

Will the Adventure Edition be exported?

Adventure Edition is for the domestic market. However, Elevate is exported to multiple countries, including Japan—a matter of pride for us.

How many Elevate units were exported last quarter?

Around 1,500 units—to Japan.

What percentage of total Elevate sales comes from exports?

We focus primarily on domestic customers. Exports are an added opportunity. This year, we have exported about more cars across models.

Will Elevate Adventure Edition production increase?

It is a limited edition, but if demand grows—as seen in Hyderabad—we may expand production.