Honda currently has only one model, the Amaze sedan, in the sub-4-metre category. Earlier, it had three more – the Brio and Jazz hatchbacks and the WR-V SUV – which have been phased out. With the revised Goods and Services Tax (GST) structure favouring sub-4-metre vehicles through lower taxation, Honda may revisit its strategy for this segment, potentially with a compact SUV. However, sources indicated that Honda has yet to finalise plans for it, with cost optimisation posing a major hurdle. 

Honda’s need for a new subcompact SUV

This SUV segment is currently one of the major growth drivers of India’s passenger vehicle market. Sub-4-metre models such as the Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue and Mahindra XUV 3XO are among the top-selling vehicles. An entry into this segment can give Honda the much-needed volume play and momentum to regain its lost market share. 

Honda has been losing market share in India due to its limited portfolio, currently comprising just three models – the Elevate midsize SUV and the City and Amaze sedans. Its absence in the fastest-growing sub-4-metre SUV segment and the delay in launching the Elevate midsize SUV at a time when demand trends shifted drastically to SUVs from hatchbacks and sedans resulted in Honda losing ground to competitors such as Suzuki, Hyundai, Kia, Toyota and Tata.

Despite being a pioneer in hybrid technology, Honda has also been lagging in the hybrid space, which has been capitalised on by Suzuki and Toyota. In the case of electric vehicles, Honda has yet to launch its first model.

Upcoming Honda launches for India 

At the Japan Motor Show 2025, Honda has revealed an aggressive product launch plan for the country, with 10 new models planned by the end of this decade, including seven SUVs and multiple powertrains. The carmaker also showcased its 0 α (Alpha) electric SUV concept, which it said will be launched in India in 2027 simultaneously with Japan.

 “Within Honda, we have started a project team, especially for the Indian market. And the team is working on the strategy for the Indian market…One of the key words in this process is electrification. We are exploring all kinds of potential approaches in the Indian market,” Honda president and CEO Toshihiro Mibe told reporters at the Japan Mobility Show.