The Japanese automaker has acquired a minority stake in India’s OMC Power to expand into clean energy storage in the country.

Japanese auto major Honda Motor Co. Ltd. has acquired a minority stake in India’s OMC Power, marking its first investment in an energy platform in the country.

The investment adds Honda to the roster of Japanese investors in OMC Power, following Mitsui & Co., which acquired a 26% stake, and Chubu Electric Power, which remains the largest Japanese shareholder with a 30% stake.

Honda has stated that this investment is geared towards contributing to a stable power supply in batteries, which is one of India’s critical requirements for electrifying its mobility and transport industries. From January 2026, OMC Power will commence a leasing business for UPS devices powered by the Honda Mobile Power Pack.

Honda Power Pack Energy India Pvt. Ltd. (HEID); which is the company’s Indian subsidiary, will supply the batteries, which OMC Power will combine with its UPS device and offer on lease to households, small businesses, schools, and other facilities. The system will use grid power for charging.

OMC Power itself is working towards developing a 1 gigawatt (GW) renewable energy portfolio and is launching a new vertical to deploy EV batteries as Battery Energy Storage Systems (BESS). It is also repurposing old EV batteries for UPS applications.

Currently, OMC Power operates across four business verticals and plans to build its 1 GWp (1,000 MWp) capacity across Uttar Pradesh, Uttarakhand, Madhya Pradesh, Bihar, Jharkhand, Assam, and the North-Eastern parts of India.

Rohit Chandra, Managing Director and CEO of OMC Power, said the collaboration with Honda follows more than four years of discussions. “It is the result of research and development, market studies, feasibility studies, and customer trials, all of which have led to this investment now,” he said.

“It is a win-win situation for both of us. Our partner is a leader in automobiles. It is coming up in EVs in a big way. Honda Motor will share its technical know-how, and we will provide them with the opportunities in our 1 GW journey.” He added.

Two Honda officials are set to join OMC Power’s management team next month to support the company with technical expertise next month.

Since 2023, Honda and OMC Power have conducted demonstration testing of the UPS device in Uttar Pradesh. The trials confirmed that repurposing electric motorcycle batteries can provide stable energy while reducing the environmental impact compared with diesel generators.

“Honda believes that electrified mobility products can contribute not only as a means of transportation but also to the advancement of energy systems for our customers and their local communities,” said Minoru Kato, Chief Officer for Motorcycle and Power Products Operations, Head of Motorcycle Business Unit, and Executive Officer of Honda Motor Co. Ltd.

“In India, where the shift toward electric motorcycles is progressing, Honda will strive to establish a resource-circulating value chain by facilitating the repurposing of end-of-life electric motorcycle batteries,” he added.

Source: CNBC TV 18, Honda

Honda Invests in Clean Energy, Buys Stake in India’s OMC Power

Abhishek Nair (Author)