Honda in Talks with Horse Powertrain to Source 1.2-Litre Engine for New Compact SUV

Honda Cars India is in talks with Horse Powertrain to outsource a 1.2-litre engine featuring petrol, hybrid, and CNG options for an upcoming compact SUV. Horse Powertrain is a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder. The company specializes in combustion and hybrid powertrains and plans to build a local engine plant in India, which would give buyers like Honda a significant cost advantage. For Honda, outsourcing an engine marks a major change, as engines have long been the core of its reputation for performance and reliability. However, Honda faces pressure to meet strict emission rules and offer multiple fuel choices, especially CNG, for a price-sensitive segment. The new compact SUV is being evaluated on an existing platform used in Indonesia, with a price range of Rs 9 lakh to Rs 12 lakh and an October 2028 production target discussed, though Honda has not confirmed these details.

Strategy and Partners

These engine talks form part of a wider shift in Honda's India strategy, with specialist firms taking on more development work. Honda is engaging Tata Technologies for vehicle design and engineering execution, and TCS for the infotainment system. The company aims to cut its full model development time from around 49 months down to roughly 30 months by running design, testing, and supplier work in parallel. Honda's new approach begins with local price and specification targets rather than adapting global products later. Asked about these plans, a Honda spokesperson declined to confirm specific partners or programs, stating that the company works with a wide ecosystem of partners but does not comment on sourcing discussions. Separately, Honda has dropped the PF2 platform project, which was meant for the next-generation City sedan and Elevate SUV, though the company stressed that neither model will be discontinued.