Honda Turns to Horse 1.2-Litre Engine for Upcoming Compact SUV

Honda is preparing a new compact SUV for the Indian market, and the powertrain plan reportedly leans on a 1.2-litre unit developed under the Horse project rather than an in-house engine. That move signals Honda’s willingness to lean on partner-sourced hardware to keep costs in check in one of the country’s most competitive segments.

Sourcing an engine externally is a notable shift for a brand long associated with its own powertrain engineering. In the compact SUV class, where pricing pressure is intense and buyers scrutinise running costs closely, sharing proven hardware can help Honda sharpen its sticker price without compromising reliability.

The 1.2-litre capacity points to an emphasis on efficiency and everyday drivability rather than outright performance. Final specifications, launch timing and pricing have not been confirmed, and Honda has not detailed how the model will sit alongside its existing SUV lineup.

For Indian buyers, the bigger question is value: a well-priced, frugal compact SUV wearing the Honda badge could be a persuasive proposition, even if the engine beneath the bonnet comes from a partner.