Honda's Upcoming Compact SUV Could Get Horse Powertrain-Sourced Engine

Quick Read - Honda is reportedly evaluating a new compact SUV with a Horse Powertrain-sourced 1.2-litre engine family that could offer petrol, hybrid and CNG options. Production is targeted for October 2028.

Honda Cars India is in discussions with Horse Powertrain to source a 1.2-litre engine for an upcoming compact SUV. The engine is being evaluated in petrol, hybrid and CNG configurations.

Horse Powertrain is a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder. It focuses on combustion and hybrid powertrains and already has a presence in India through the Renault Duster hybrid, which launches on October 17 using a Horse 1.8-litre hybrid unit.

The company is understood to be planning a local engine manufacturing plant in India, which would bring costs down for any Indian carmaker sourcing from them.

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Why Honda is looking outside for engines

Honda has traditionally treated engine development as its own domain. Offering CNG and hybrid options alongside tighter emission norms, all within a price-sensitive segment, makes developing multiple fuel-specific engines in-house expensive.

Sourcing a ready multi-fuel engine family from Horse addresses all of that in one move.

What is known about the compact SUV

The vehicle is being evaluated on an existing Honda platform used in Indonesia, with a price range of Rs 9 to 12 lakh and an October 2028 production start discussed as targets. Honda has not confirmed any of this officially.

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Honda’s India Product Plan Is Also Changing

The engine talks are part of a wider strategy shift. Tata Technologies is being engaged for vehicle design and engineering, while TCS is being brought in for infotainment. Honda is targeting a cut in its development cycle from around 49 months to approximately 30 months, starting from India-specific price and spec targets rather than adapting a global model late in development.

Separately, Honda has reportedly dropped its PF2 platform project, which was expected to underpin the next-generation City and Elevate. Honda has not confirmed this, but says both models will continue to be important to its India business.

Also Read - Upcoming Cars in India 2026: 10 Launches Confirmed for September to December

Image Source: Honda Cars India, Horse Powertrain
Source: AutoCar India