Honda India compact SUV 1.2-litre hybrid CNG Horse
Honda is outsourcing a 1.2-litre multi-fuel engine to Horse Powertrain and design to Tata Technologies for a new sub-4 metre SUV, aiming for a 30-month
Honda is in talks with Horse Powertrain to outsource a 1.2-litre engine with petrol, hybrid and CNG options for an upcoming compact SUV. The carmaker is also negotiating with Tata Technologies for the design and engineering of the sub-4 metre vehicle targeting the Indian market.
Engine and platform choices align with India-specific cost and efficiency goals
The upcoming India-focused SUV will measure no longer than 4,000 mm. It will offer a 1.2-litre engine in petrol, petrol-electric hybrid, and petrol-CNG variants. This engine capacity and restricted length will qualify the model for a low 18% GST.
Horse Powertrain already manufactures a 1.2-litre multi-fuel engine, codenamed H12. The company showed the H12 engine at ACMA Automechanika in New Delhi in February 2026. Honda may license the same hybrid system for its sub-4 metre SUV. Horse Powertrain is a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder, and specialises in combustion and hybrid powertrains.
Honda compresses development cycle to under 30 months for faster India launches
The engine discussions are part of a radical change in Honda’s strategy to develop cars for India. Honda aims to be ready with the all-new India-focused model in approximately 30 months instead of the usual time of around 49 months. This development cycle target is for its proposed process, not a confirmed timeline for the compact SUV.
Specialist partners are taking on a larger share of the work from the outset. Honda wants design, testing and supplier development to proceed in parallel. Engineering partners would take a greater role in design, verification and supplier management. Honda would retain responsibility for overall vehicle performance targets and final validation. The new approach starts with the specifications and price required for India, rather than adapting a global product late in development.
Pricing and positioning set to challenge segment leaders with premium feel
Honda is targeting a price range of Rs. 9-12 lakh for the upcoming compact SUV. The base trim could be priced significantly above key rivals.
| Model | Expected Price Difference vs. Honda SUV Base Trim |
|---|---|
| Hyundai Venue | Around Rs. 1 lakh less |
| Maruti Brezza | Around Rs. 1.5 lakh less |
| Tata Nexon | Around Rs. 1.6 lakh less |
Honda sees an opportunity to attract customers moving from two-wheelers to their first car. Many such customers currently choose rival car brands despite owning a Honda two-wheeler. The company has set October 2028 as the SOP timeline, aiming for a festive season launch. Honda is also expected to involve TCS in the development of the infotainment system.
"Honda plans to offer a 1.2-litre engine in petrol, petrol-electric hybrid, and petrol-CNG variants in the upcoming India-focused SUV," said Autocar Professional. Honda aims to be ready with the all-new India-focused model in approximately 30 months instead of the usual time of around 49 months.
