Honda is planning to launch a sub-4-meter SUV in India, targeting higher volumes in the low-GST regime. This move is part of Honda's renewed strategy for the Indian market, aiming to introduce 10 new models by 2030. Currently, Honda offers the Amaze and City sedans and the Elevate compact SUV in India, but with a limited portfolio, generating large volumes is a challenge. The sub-4-meter SUV segment holds significant potential for future growth, and Honda has experience in this category with models like the Brio, Jazz, and WR-V. If launched, the new sub-4-meter SUV could be based on Honda's Global Small Car Platform (GSCP) and feature a next-gen modular architecture supporting hybrid and fully electric powertrains. For petrol variants, a 1.2-litre engine is likely to be the engine of choice, similar to earlier models. This engine will also unlock the reduced GST rate of 18% available with sub-4-meter cars, allowing Honda to launch its SUV at an accessible price point. Following the reduction in GST rates on sub-4-meter cars from 28% to a flat 18%, sales in this segment have increased significantly. Honda's new sub-4-meter SUV will face fierce competition from strong rivals such as Tata Nexon, Maruti Brezza, Hyundai Venue, Kia Sonet, Mahindra XUV 3XO, and Skoda Kylaq, which offer a wide range of powertrain options. Excluding the entry-level hatchbacks, the primary growth drivers in the Indian auto industry in the coming years will be the sub-4-meter, compact, and mid-size SUV segments, with the sub-4-meter segment generating the highest volumes. The Indian market is gaining global attention, and with its new models, Honda could capture a larger share of the Indian auto market.
