Honda weighs sub-₹10 lakh compact SUV for India to take on Nexon, Brezza, Venue

Honda Cars India Limited (HCIL) is evaluating plans to introduce a sub-₹10 lakh compact SUV for the Indian market, potentially marking its entry into one of the country’s most competitive passenger vehicle segments. According to people familiar with the development, the company is studying a sub-4 metre SUV that will be positioned below the Honda Elevate and could become one of the most affordable SUVs sold by Honda globally.

A person aware of the development stated that the Japanese carmaker sees an opportunity to re-enter an entry-level product space that it vacated in recent years.

“The idea is to fill the white space that opened up after the exit of the Honda Brio (built in India between 2011 and 2020) and the Honda BR-V (sold in India between 2016 and 2022) from the Indian market,” the person said, requesting anonymity as the discussions are internal.

“However, unlike those products, the new model under evaluation is likely to be a pure-petrol offering, available in both manual and automatic transmission options,” the person added. The source further clarified that there are currently no plans for a diesel-powered version. However, the feasibility of introducing an electric or hybrid variant is being evaluated as part of the longer-term product road map.

Amaze platform and Tapukara production

Another source revealed that the proposed SUV could share its underpinnings with the platform used by the Honda Amaze sedan.

“The upcoming model is expected to roll off the same production line where the Amaze is currently manufactured,” the person said, referring to Honda’s Tapukara manufacturing facility in Rajasthan.

The Amaze (priced between about ₹7.20 lakh and ₹9.96 lakh, ex-showroom) is currently produced at the Tapukara plant, which serves as a key manufacturing hub.

When contacted by Fortune India, Honda Cars India declined to comment on the specific product under evaluation.

“We have not made any official announcement regarding our entry into the compact SUV segment. At this stage, we are unable to share any specific information about models that may form part of our future product plans,” a company spokesperson said.

A fast-growing segment

Industry data shows the compact SUV category accounted for about 1.38 million units in FY24–25, making it one of the largest segments in the domestic passenger vehicle (PV) market. The category represented nearly half of India’s total SUV sales of around 2.79 million units during the year and roughly one in every four passenger vehicles sold in the country.

If launched, the new model would compete with established products such as the Tata Nexon (₹8 lakh–₹15.6 lakh), Maruti Suzuki Brezza (₹8.3 lakh–₹14.1 lakh) and the Hyundai Venue (₹7.9 lakh–₹13.5 lakh), all ex-showroom prices.

The segment is currently led by the Tata Punch micro-SUV with 196,572 units, followed by the Brezza at 189,163 units and the Maruti Suzuki Fronx with 166,216 units in FY24–25.

Part of Honda’s broader product push

The SUV is expected to be powered by a small petrol engine in line with the tax structure for sub-4 metre vehicles, allowing Honda to price the product aggressively in the mass segment, revealed one of the sources quoted above.

In a later phase, the company is also understood to be exploring the possibility of introducing an electric derivative of the model. The move also aligns with the broader product roadmap outlined by Honda Motor Company (HMC), which has previously indicated plans to introduce at least 10 new models in India by 2030, of which six are expected to be SUVs, including an electric version of the Elevate.

While the project remains under internal discussion, people familiar with the development said Honda may consider showcasing the SUV at the Auto Expo 2027 if development timelines align.

What analysts say

Puneet Gupta, Director at S&P Global Mobility, stated that the hatchback market size in India is shrinking as customers increasingly shift toward the sub-compact SUV category, making entry into the segment strategically important for carmakers such as Honda.

“The sub-4 metre SUV segment accounts for a substantial portion of India’s passenger vehicle volumes today and continues to attract strong consumer interest,” Gupta said.

According to him, this could help Honda expand its reach beyond its existing sedan and mid-SUV buyers.

“If Honda introduces a product that combines competitive, feature-packed offerings with its traditional strengths of refinement, reliability, and fuel efficiency, it could improve the brand’s relevance among younger and first-time SUV buyers while also supporting overall volume growth,” he added.