Honda has been quietly plotting a return to the sub-4m SUV space, which its WR-V once contested. Looking to re-enter this segment, the Japanese automaker has been developing a new SUV expected to launch in the coming years. Before that, we have some big leads on the SUV. This story has now taken an unexpected turn, and it involves a very surprising partner. Here is everything we know so far.
New Honda Compact SUV Coming – What’s New?
For the upcoming compact SUV, Honda Cars India is reportedly in talks with Horse Powertrain to source a 1.2-litre engine. The engine is expected to come in petrol, hybrid and CNG options. The multi-powertrain setup would help the Japanese automaker cater to different sets of buyers. However, Honda hasn’t officially confirmed any of this; the details come from a .
Many of you might be worried about what a Horse Powertrain is, right? Well, Horse Powertrain is a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder. It specialises in combustion and hybrid engines, and it is already active in India. The Renault Duster hybrid, launching on October 17, uses its 1.8-litre hybrid engine. Horse also wants more Indian customers and is reportedly planning a local engine plant. A fully localised engine would give a buyer like Honda a big cost advantage, which matters a lot in a price-sensitive segment.
How Will This Benefit Honda?
Honda faces pressure on two fronts with its current 1.2-litre and 1.5-litre petrol engines. It has to meet tighter emission and fuel-efficiency norms, and it also needs to offer the multiple fuel options that Indian buyers increasingly want, especially CNG. Developing all of that in-house for an entry-level SUV would be costly. Buying a ready multi-fuel engine family would solve both problems at once.
The engine is part of a larger change in how Honda plans to build cars for India. Tata Technologies is reportedly being engaged for design and engineering, and TCS is expected to work on the infotainment system. Honda is also aiming to cut its development time for a full model change from around 49 months to about 30 months.
Expected Price And Launch
The SUV is reportedly being evaluated on an existing Honda platform used in Indonesia. Honda has discussed a price of Rs 9 lakh to Rs 12 lakh and a production start in October 2028 as project targets, so the launch is still some way off. At that price, it would sit in the busy compact SUV segment against rivals like the Tata Nexon, Hyundai Venue and Kia Sonet.
There is also some news on Honda’s existing cars. The company has reportedly dropped its PF2 platform project, which had been expected to underpin the next-generation City and Elevate. Honda says both models remain important to its India business and will continue. It has said details of their next generations will come later.