Honda's New SUV May Not Use a Honda Engine: Here's Why the Company Could Turn to Horse Powertrain

Honda Cars India is preparing to enter the highly competitive sub-4-metre SUV segment, and its upcoming model could bring an unusual change to the company's powertrain strategy.

According to reports, Honda is in discussions with Horse Powertrain to source a 1.2-litre engine for its upcoming compact SUV. If the plan materialises, the SUV could be offered with multiple powertrain options, potentially including petrol, hybrid and CNG versions.

However, these details are based on reports and have not yet been officially confirmed by Honda.

Who Is Horse Powertrain?

Horse Powertrain specialises in internal-combustion and hybrid powertrain technologies. It is a joint venture involving Renault Group and Geely, with Saudi Aramco also holding a stake.

The company is looking to expand its presence in India and has reportedly been exploring partnerships with Indian automakers. It is also considering local engine manufacturing, which could eventually help reduce production and sourcing costs.

Why Would Honda Source an Engine From Outside?

Honda already has its own petrol engines in India. Its current range includes a 1.2-litre four-cylinder petrol engine used in the Amaze and a 1.5-litre four-cylinder engine used in models such as the City and Elevate.

So why would the company need an externally sourced engine?

One reason could be the changing requirements of the Indian automobile market.

Automakers are facing increasingly stringent emission and fuel-efficiency requirements while customers are demanding more powertrain choices, including CNG and hybrid technology.

Developing an entirely new engine family capable of supporting several technologies can require substantial investment, engineering resources and development time.

Sourcing an existing powertrain from a specialist company could potentially allow Honda to bring a new model to market more quickly and efficiently.

One Engine, Multiple Fuel Options

One of the most interesting possibilities is that the new powertrain could support different applications.

Reports suggest Honda could explore petrol, hybrid and CNG versions for its upcoming compact SUV.

If implemented successfully, this would give Honda greater flexibility to offer different variants based on customer preferences and regional demand.

It could also allow the company to compete more effectively in a market where buyers are increasingly looking for fuel-efficient alternatives without completely moving away from internal-combustion engines.

Horse Powertrain Is Also Linked to Renault's Hybrid Technology

Horse Powertrain's technology is already expected to play a role in Renault's upcoming hybrid products.

Reports suggest the next-generation Renault Duster hybrid for India could use a Horse Powertrain system featuring a 1.8-litre petrol engine, two electric motors and a 1.4kWh battery.

This demonstrates the company's growing role as a powertrain supplier rather than simply an engine manufacturer.

Honda's Compact SUV Could Arrive by 2028

Honda's upcoming sub-4-metre SUV is reportedly being targeted for launch around 2028.

The model could be based on a platform related to the next-generation WR-V being developed for Indonesia.

Reports also suggest that Tata Technologies could contribute to the vehicle's design and engineering, while TCS may be involved in its infotainment system.

Honda is simultaneously trying to reduce the time required to develop new vehicles.

The company reportedly wants to bring the development cycle for a full model change down from around 49 months to approximately 30 months.

Parallel development of design, testing and supplier activities could help achieve this target.

Honda Is Entering a Crowded Segment

The upcoming SUV would enter one of India's most competitive automotive segments.

It is expected to go up against models such as the Hyundai Venue, Tata Nexon and Maruti Suzuki Brezza.

Future competitors could include new-generation models and upcoming compact SUVs from other manufacturers.

A flexible powertrain strategy could therefore become an important advantage for Honda.

Why This Move Could Matter

Using an externally sourced engine would represent a significant strategic shift for Honda in India, but it could also make business sense.

Instead of spending years and significant resources developing a completely new multi-fuel engine family, Honda could potentially use an established powertrain technology and concentrate its own resources on vehicle design, refinement, electrification and customer experience.

However, the engine, fuel options and launch timeline of Honda's upcoming SUV remain unconfirmed. The final specifications will become clear only when Honda officially announces the vehicle.