Honda sets up new subsidiary in India for auto financing business, to apply for NBFC licence

Honda Motor Co. Ltd. of Japan on Wednesday (August 20, 2025) announced the establishment of a new company in India, Honda Finance India Private Ltd. that will offer customers retail sales financing services including loans and lease sales options for Honda products in India.

The company believes that there would be more demand for financing of cars and motorcycles considering the growth in the automobile market in India. 

“Until now, retail sales financing services in the Indian market have mainly been provided by local financial institutions. However, in light of market trends, Honda will further strengthen its business in India by offering its own sales financing services through a local subsidiary in India,” the company said. 

Honda Finance India Private Ltd. will apply for a Non-Banking Financial Company (NBFC) licence to conduct financial services business in India. 

After obtaining the licence, the company will begin offering retail sales financing services to help customers finance their purchase of motorcycles, automobiles and services provided by Honda, it said. 

Financial services business has been one of the main business areas of Honda, and the company has established local subsidiaries specialising in retail sales financing services in Japan and various countries in key regions such as North America, and Europe, it said.

With the establishment of the new company, India became the ninth country where Honda has a local subsidiary to offer financial services, it added. 

In anticipation of the global expansion of software-defined vehicle (SDV) sales in the future, Honda is looking into opportunities to offer new financial services designed to increase customer satisfaction and the value of the customer experience using various data from Honda SDVs. 

With such new services, Honda will further strengthen its financial services business not only in India but across the globe, the company said.