For the first time in 78 years, a historic outsourcing decision has been made due to losses, as Honda (HMC.US) teams up with Tata Technologies to implement cost reduction and efficiency improvements for new vehicles.

According to sources familiar with the matter, Honda Motor Co. (HMC.US) has outsourced the development of its new vehicle series to Tata Technologies Ltd., marking the first time this Japanese automaker has tasked an Indian engineering service company with creating an end-to-end platform aimed at significantly reducing costs. Anonymous sources indicate that the platform is expected to support multiple models and will be compatible with traditional internal combustion powertrains as well as hybrid and fully electric solutions. They did not specify which markets these vehicles designed by Tata Engineering will be sold in.