Honda is preparing for a major product resurgence in India, and a new sub-4-metre compact SUV could play a central role in its strategy. With the revised GST structure heavily favoring sub-4m models, the Japanese automaker is reassessing its approach to the segment — one that could revive its mass-market presence in one of the world’s fastest-growing automotive markets.
Honda Re-enters Key Volume Segment
Currently, Honda’s only sub-4m model in India is the Amaze compact sedan. The brand once had a stronger presence with models like the Brio, Jazz, and WR-V, all of which have been discontinued.
Now, with demand accelerating in the compact SUV space — driven by models like the Tata Nexon, Maruti Brezza, Hyundai Venue, and Mahindra XUV 3XO — Honda is exploring a comeback in this lucrative segment.
However, according to industry sources, the project has not yet been finalized, as cost optimisation and pricing strategy remain key hurdles.
Why This SUV Is Crucial for Honda
The sub-4m SUV category is the largest and fastest-growing passenger-vehicle segment in India, contributing significantly to market volumes. Honda, once a strong player in the premium and compact car segments, has seen its market share fall due to a limited product lineup and delayed entry into SUV-focused categories.
Today, its portfolio comprises just three models — City, Elevate, and Amaze — compared to competitors like Maruti Suzuki, Hyundai, Kia, Tata, and Toyota, who have expanded aggressively with SUVs, hybrids, and EVs.
With SUV adoption increasing and sedan demand shrinking, a compact SUV could serve as Honda’s volume driver and restore competitive strength.
Honda Strategises Future Line-up
At the Japan Mobility Show 2025, Honda announced a bold plan to launch 10 new models in India by 2030, including seven SUVs and a mix of hybrid and electric offerings.
A highlight was the Honda 0 Series Alpha EV concept, scheduled to debut in India in 2027, signaling the brand’s EV roadmap.
Honda CEO Toshihiro Mibe emphasized India’s importance, stating:
“India is a key market. Electrification is a major focus, and we are exploring multiple product strategies tailored for India.”
What to Expect
While timelines remain unconfirmed, the new compact SUV is likely to feature:
Advanced hybrid technology
Aggressive pricing to compete in mass-market segment
Localization to control costs
Modern design inspired by Honda’s global models
If finalised, this SUV could be Honda’s most important India-focused product since the Amaze.