Honda is in negotiations with Horse Powertrain for supplying a new series of 1.2 litre engine in its soon-to-launch compact SUV in India. These engines could come in both petrol, hybrid and CNG versions, which would be a significant departure from how Honda has approached powertrain development in India before.
Several Powertrains Likely for New Honda SUV
The next-gen SUV will be positioned in the sub-4 metre segment where Honda doesn’t currently have any offering. Honda has already announced plans for a new small SUV for India, with a possible launch slated for 2028.
The 1.2 litre engine will allow Honda the possibility of offering a petrol, hybrid, and CNG variant of the vehicle without having to engineer the powertrain themselves. Horse Powertrain offers engines based on combustion and hybrid technology, with Renault Group and Geely Auto being shareholders alongside Saudi Aramco.
Why Honda Needs to Explore the Horse
Currently, Honda is using its own 1.2-liter and 1.5-liter petrol engines in India, but the development of various types of engines, one for each fuel type, can be costly especially in the price-sensitive compact SUV category.
Having its own localized engine family will give Honda the capability of controlling cost while adhering to more stringent emissions standards and fuel efficiency. This way Honda will also be able to have CNG, an important powertrain in India.
New SUV Can Make Use Of Available Honda Platform
This compact SUV can be seen being tested on an existing Honda platform that is available in Indonesia. The project has been known to have price negotiations in a range of about ₹9 lakh to ₹12 lakh, but it might start production in October 2028. However, Honda has yet to confirm these details.
The SUV can be seen competing with other brands in the compact SUV segment, including Tata Nexon and Mahindra XUV 3XO.
Development Strategies at Honda Are Evolving
The talks around engines are just one element of a larger shift in Honda’s strategy in India. The car maker is trying to involve specialists in areas like vehicle engineering, infotainment and supply chain development, which will lead to shorter development cycles for future models.
In addition, the company aims to build a more diversified portfolio in India – with plans to launch 10 models by 2030 and introduce two new SUVs.
What We Think
The plan by Honda to use an engine of 1.2 litres made by Horse Powertrain may be of much assistance to Honda when it comes to regaining a presence in the small SUV category with a selection of powertrains.
The availability of options for gasoline, CNG and hybrid models is quite important because Honda will be able to reach out to a variety of customers using the same engines.