Overview
- Late September 2026 reports say Honda Cars India is in talks with Horse Powertrain to source a 1.2‑litre engine that can be offered in petrol, hybrid and CNG forms for a new compact SUV.
- Horse Powertrain is a Renault–Geely joint venture with Saudi Aramco as a shareholder and already supplies a Horse 1.8‑litre hybrid for the new Renault Duster in India.
- Sources say the project has discussed a target price band of about Rs 9 lakh to Rs 12 lakh and a start of production around October 2028, though Honda has not confirmed those targets.
- The engine talks form part of a wider shift in Honda’s India strategy that includes using Tata Technologies for vehicle engineering and TCS for infotainment to cut a typical model cycle from about 49 months to roughly 30 months.
- If confirmed, outsourcing and localising engines would let Honda offer multi‑fuel variants at lower cost for buyers and change how the company develops India‑specific cars in a crowded sub‑4‑metre SUV market.