As part of its renewed strategy for the Indian market, Honda has plans to launch 10 new models here by 2030
Honda currently offers the Amaze and City sedans and the Elevate compact SUV in India. With a limited portfolio, generating large volumes is a challenge. This could change in the next four years, as Honda has unveiled a major product offensive for the Indian market. Honda will be launching 10 new models, of which 7 will be SUVs. Honda has now revealed that a sub 4m SUV could also be considered for the Indian market. Let’s get more details on these developments.
Honda Sub 4m SUV – What to expect?
Honda is yet to reveal any details about its sub-4-meter SUV for India. Plans are yet to be finalized, even though the sub 4m SUV segment holds significant potential for future growth. Honda already has experience in sub 4m vehicles like the Brio, Jazz and WR-V. While the Brio was discontinued in 2019, Honda Jazz and WR-V were discontinued in 2023.
Assuming Honda launches a new sub-4-meter SUV in India, it could be based on its Global Small Car Platform (GSCP). Honda could also use a next-gen modular architecture that would support hybrid and fully electric powertrains. For petrol variants, the engine of choice is likely to be a 1.2-litre engine. Earlier models such as Brio, Jazz and WR-V had 1.2-litre petrol engine options. Existing Honda Amaze is also equipped with a 1.2-litre petrol engine.
A 1.2-litre engine will also unlock the reduced GST rate of 18%, available with sub 4m cars. This will allow Honda to launch its sub-4-meter SUV at an accessible price point. Following the reduction in GST rates on sub 4m cars from 28% to a flat 18%, sales in this segment have increased significantly. In September, this segment reported double-digit YoY growth of 11.37% and MoM growth of 25.17%.
Fierce Competition
When launched, Honda’s new sub 4m SUV will have to compete with strong rivals such as Tata Nexon, Maruti Brezza, Hyundai Venue, Kia Sonet, Mahindra XUV 3XO and Skoda Kylaq. Tata Nexon is available with petrol, diesel, CNG and electric powertrain options, offering a wide range of options to consumers. Maruti Brezza is offered with a 1.5-litre petrol engine and is available in CNG variant as well.
Another strong rival is Hyundai Venue, which has engine options of 1.0-litre turbo petrol, a 1.5-litre NA petrol and a 1.5-litre turbo diesel. Mahindra XUV 3XO also offers a wide range of powertrain options. Users can choose from a 1.2-litre turbo petrol, a 1.2-litre NA petrol and a 1.5-litre turbo diesel engine option. Given the dominance of petrol and diesel engines in this segment, it is possible that Honda could focus on hybrid and electric powertrains to maintain exclusivity.
Excluding the entry-level hatchbacks, the primary growth drivers in the Indian auto industry in the coming years will be sub 4m, compact and mid-size SUV segments. Among these, the sub 4m segment will continue to generate the highest volumes. The Indian market is getting everyone’s attention, as it is now the third largest in the world. Moreover, there is significant growth potential, with estimates suggesting car sales in India hitting up to 6 million units per annum by 2030. With its new models, Honda could capture a larger share of the Indian auto market.
