Motorbeam iconMotorbeamSep 29, 2026 ~5 min source read

Honda may fit a Horse Powertrain 1.2‑litre engine in a new compact SUV for India

Reports say Honda Cars India is discussing sourcing a 1.2‑litre petrol engine from Horse Powertrain with petrol, hybrid and CNG variants under consideration; production is tentatively eyed for October 2028 and pricing targeted at Rs. 9–12 lakh.

Honda Compact SUV Could Get Horse 1.2-Litre Petrol, Hybrid & CNG Engine

Share this story

Send the public story page.

Useful takeaways from this story.

Honda is reportedly in talks with Horse Powertrain (a Renault‑Geely JV with Saudi Aramco as a shareholder) to source a 1.2‑litre engine for a compact SUV.

The engine is expected to be offered in petrol, hybrid and CNG configurations to meet cost and emissions needs in India.

# What the report says Honda Cars India is reportedly exploring a supply deal with Horse Powertrain to source a 1.2‑litre engine for an upcoming compact SUV aimed at the Indian market. The proposed powertrain could be offered in petrol, hybrid and CNG formats. Honda has not confirmed the discussions or disclosed details about the vehicle.

# Who is Horse Powertrain Horse Powertrain is a joint venture between Renault Group and Geely, with Saudi Aramco as a shareholder. The company develops internal combustion engines and hybrid powertrains. It already has a presence in India through its role in supplying a 1.8‑litre hybrid powertrain for the hybrid Renault Duster scheduled to launch on October 17.

# Engine and fuel options under discussion

  • Petrol: a straightforward internal combustion option for the mass market.
  • Hybrid: a self‑charging hybrid variant to meet tighter emissions and fuel‑efficiency requirements.
  • CNG: a compressed natural gas option to reduce running costs for price‑sensitive buyers.

# Pricing, platform and production timeline

# Why Honda might source externally Sourcing a ready powertrain can reduce engineering and investment costs compared with developing petrol, hybrid and CNG variants internally. It can also shorten the time to market if supplier localisation and capacity are available. Horse Powertrain is reportedly considering local manufacturing in India, which would help reduce component costs and make third‑party powertrains more competitive for domestic automakers.

# Changes in Honda's product development approach The reported engine talks sit inside a broader shift in Honda's India strategy. The company is looking to work more closely with external engineering and technology partners to cut development time and cost. Reported moves include:

  • Outsourcing vehicle design and engineering work to partners such as Tata Technologies.
  • Using TCS for parts of infotainment development.
  • Running design, testing and supplier preparation in parallel rather than strictly sequentially.

Honda would retain responsibility for final vehicle performance targets and validation while delegating larger roles in engineering, testing and supplier management to partners.

# Open questions and next steps

# What to watch for next

More context around this story.

Loading more related stories...

Keep reading in the app

Open the app view to save this story, compare related coverage, and continue from the same source.

Open in app