Honda’s upcoming sub-compact SUV is poised to adopt a radical shift in powertrain strategy. The automaker is reportedly in talks with Horse Powertrain to source a 1.2-litre engine capable of supporting petrol, hybrid, and CNG variations. This SUV will also mark Honda’s return to the sub-compact SUV segment after the discontinuation of the WR-V.
The new model is still under development, so Honda has not confirmed its name, specifications or launch date. Project discussions are understood to include a price range of around Rs 9 lakh to Rs 12 lakh and production from October 2028.
A different engine plan for Honda
Honda has traditionally developed its engines in-house. The company currently uses 1.2-litre and 1.5-litre petrol engines across its India range. Developing separate versions for petrol, CNG and hybrid applications can take considerable time and money.
Horse Powertrain could provide Honda with another route.
- Engine capacity: 1.2-litre
- Expected fuel options: Petrol, CNG and hybrid
- Supplier under discussion: Horse Powertrain
- Local production: Being considered by Horse
- Honda’s existing engines: 1.2-litre and 1.5-litre petrol
Horse Powertrain is a joint venture between Renault Group and Geely, with Saudi Aramco holding a 10 percent stake. The company works on combustion engines, hybrid systems, transmissions and other powertrain technology.
Horse already has an Indian connection. The upcoming Renault Duster hybrid is set to use a Horse 1.8-litre hybrid powertrain. Horse is also looking at setting up an engine manufacturing facility in India. Local production could help lower costs for manufacturers using its engines.
SUV could sit below the Elevate
The new Honda SUV is reportedly being evaluated with an existing Honda platform used in Indonesia. The earlier PF2 platform project, which was expected to support future Honda models including the City and Elevate, has reportedly been dropped.
Honda has not confirmed the platform decision. It has also said that the City and Elevate will continue to be important models for its India business.
The reported price target puts the upcoming SUV in a busy part of the Indian market. It could face rivals such as the Hyundai Venue, Maruti Suzuki Brezza, Kia Sonet, Tata Nexon, Mahindra XUV 3XO and Skoda Kylaq.
No information has been confirmed yet about its dimensions, gearbox, power output or equipment.
Honda wants shorter development time
The engine plan is part of a wider change in Honda’s product development strategy for India. The company is looking at greater support from outside engineering and technology partners.
- Tata Technologies is reportedly involved in vehicle design and engineering execution.
- TCS is expected to contribute to the infotainment system.
- Supplier development and testing could happen alongside vehicle development.
- Honda wants greater use of Indian engineering and suppliers.
- The company is targeting a model development cycle of around 30 months, compared with about 49 months earlier.
Honda would continue to set vehicle performance targets and handle final validation, while partners could take on more engineering and supplier-related work.
What Honda has said
Honda Cars India has not confirmed the Horse Powertrain discussions or the compact SUV programme. The company has said that it works with a wide network of technology, engineering and supplier partners and does not comment on specific future programmes.
The company also wants India to play a bigger role in vehicle development and manufacturing. Its future products are expected to make greater use of local engineering capabilities.
If developed as reported, the compact SUV would give Honda a new product in a highly competitive price range while allowing petrol, CNG and hybrid powertrains to be considered from the start.