Honda Cars India is reportedly exploring a partnership with Horse Powertrain to source a 1.2-litre engine for an upcoming compact SUV. The proposed powertrain could be offered in petrol, hybrid and CNG configurations, allowing the automaker to expand its engine options without developing an entirely new engine family in-house.
According to a report, discussions between the two companies are underway, although Honda has not confirmed the arrangement or disclosed details of the proposed vehicle.
The potential partnership comes as Honda looks to strengthen its presence in India’s price-sensitive compact SUV segment while addressing tighter emission regulations, fuel-efficiency requirements and demand for alternative fuel options.
Honda Compact SUV: Expected Engine and Powertrain Options
The proposed 1.2-litre engine is expected to be sourced from Horse Powertrain, a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder. The company specialises in internal combustion engines and hybrid powertrain technologies.
Horse Powertrain already has a presence in India through its involvement in the upcoming hybrid version of the Renault Duster, which is scheduled to launch on October 17. That model will use a 1.8-litre hybrid powertrain supplied by the company.
For Honda, sourcing an engine from an external supplier could provide access to multiple fuel configurations, including petrol, hybrid and CNG options. Developing these technologies independently could involve significant engineering and investment costs, particularly in the compact SUV segment.
Horse Powertrain is also understood to be considering a local manufacturing facility in India. Greater localisation could help reduce production costs and make its powertrains more competitive for domestic automakers.
Honda Compact SUV: Expected Price and Production Timeline
The upcoming Honda compact SUV is reportedly being evaluated on an existing platform used by the company in Indonesia.
According to the report, the project is being considered with a target price range of Rs. 9 lakhs to Rs. 12 lakhs. Production is tentatively expected to begin in October 2028.
These figures are project targets and have not been officially confirmed by Honda. Details regarding the SUV’s design, specifications, variant lineup and launch timeline remain undisclosed.
If introduced, the new model would expand Honda’s presence in the compact SUV segment, where pricing and running costs remain important considerations for buyers.
Honda’s New Product Development Strategy
The reported engine discussions form part of a broader change in Honda’s approach to vehicle development in India. The company is looking to work more closely with external engineering and technology partners to reduce development time and improve cost efficiency.
Tata Technologies is reportedly being considered for vehicle design and engineering work, while TCS is expected to contribute to infotainment development.
Under the proposed approach, different aspects of vehicle development, including design, testing and supplier preparation, would progress simultaneously rather than sequentially.
Honda is targeting a reduction in the development cycle for a full model change from approximately 49 months to around 30 months. This is a broader development objective and not a confirmed timeline for the upcoming compact SUV.
The company is also looking to develop products around the requirements of Indian customers from the beginning, rather than adapting vehicles designed primarily for other markets.
Honda would continue to oversee overall vehicle performance targets and final validation, while external partners could take on a larger role in engineering, testing and supplier management.
Honda’s Response to the Report
Honda Cars India has not confirmed the reported engine sourcing discussions or the involvement of specific development partners.
In a statement a company spokesperson said Honda works with a broad network of technology, engineering and supplier partners but does not comment on individual partnerships, sourcing discussions or future powertrain programmes.
The company also highlighted its focus on strengthening product development capabilities in India, with an emphasis on products tailored to domestic customers and greater use of the country’s engineering resources.
Honda Reportedly Drops PF2 Platform Project
Separately, Honda is understood to have discontinued the PF2 platform project, which had reportedly been planned as the foundation for the next-generation City sedan and Elevate SUV.
The reported decision leaves questions about the platforms that will underpin future generations of these two models. However, Honda has not confirmed the status of the PF2 project or disclosed its future platform strategy.
The company has stated that the City and Elevate will continue to remain important products in its India portfolio. Details regarding their successors, including their platforms and powertrain options, are expected to be announced at a later date.
Honda has also not disclosed which architecture it plans to use for future electric vehicles intended for India. The company has indicated that India will play a growing role in its global manufacturing and engineering operations, with future products expected to combine global electrification technologies with local development capabilities.
What This Means for Honda in India
The reported partnership with Horse Powertrain could allow Honda to expand its powertrain portfolio while reducing the need for independent development of multiple engine configurations.
A locally sourced engine family with petrol, hybrid and CNG options could provide flexibility in addressing different customer requirements and regulatory standards.
However, the proposed compact SUV remains under evaluation, and Honda has not officially confirmed its specifications, pricing or production schedule. The company’s future platform strategy and the next generations of the City and Elevate also remain unclear.
