Honda To Borrow Renault Engine For Its Future Compact SUV
Written By: Kailash Jha Published: September 26, 2026
Honda is evaluating an innovative approach for a future compact SUV. Instead of developing the engine entirely in-house, Honda Cars India is in talks with Horse Powertrain to source a 1.2-litre engine family capable of supporting petrol, hybrid, and CNG applications.
The vehicle itself remains unofficial, with current discussions targeting a price range of approximately Rs 9 lakh to Rs 12 lakh and a possible production start in October 2028. Honda has refrained from confirming the program, the engine supplier, or final specifications, keeping these as development goals rather than launch commitments.
If the project materializes, it could introduce Honda into a highly competitive segment below the Elevate, currently priced at about Rs 11.81 lakh, and above much of the Amaze range.
Why Honda May Choose to Buy an Engine
Horse Powertrain, a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder, develops powertrains for various carmakers.
For Honda, outsourcing an engine represents a significant shift in its traditional approach, heavily reliant on in-house petrol engines, including the 1.2-litre unit used in the Amaze and the 1.5-litre engine in the City and Elevate.
The challenge lies in offering diverse fuel options for a new mass-market SUV. While petrol remains essential, CNG demand is rising, and hybrids are becoming more pertinent as fuel economy and emission standards tighten. Developing separate versions in-house adds cost and time.
An outsourced multi-fuel engine family, potentially with local production, could alleviate these burdens.
Target Price Reveals Competitive Segment
The proposed compact SUV is reportedly based on an existing Honda platform sold in Indonesia. No specific details regarding dimensions, body style, gearbox options, power output, or equipment have been confirmed.
The reported price range of Rs 9 lakh to Rs 12 lakh offers valuable insight. This price point would place the new Honda SUV in direct competition with a wide range of sub-four-metre and compact SUVs.
Moreover, it would need to avoid competing too closely with the Elevate, whose current pricing starts around Rs 11.81 lakh.
Honda aims to control development and component costs from the outset, rather than attempting to make an expensive global product more affordable later in the program.
Faster Development is Also a Priority
The engine discussions are part of a broader plan to streamline Honda's development process. Specialist engineering partners, such as Tata Technologies in vehicle engineering and TCS in infotainment, are expected to play a more significant role.
Honda aims to reduce its full-model-change development cycle from approximately 49 months to around 30 months. This figure represents a process target, not the confirmed development timeline for this SUV.
Honda has also confirmed that an India-focused strategic vehicle, scheduled for 2028, has entered the execution phase, though it hasn't directly linked this announcement to the compact SUV.