Honda Elevate, Upcoming Honda Cars for India, Hybrids and Electric Vehicles, Next-Gen City

Honda is developing a global platform for its range of small and mid-size cars, with India set to become the global production base for the domestic market and the rest of the world. This all-new modular platform (code: PF2) will underpin a future product lineup that includes sedans, SUVs, electric vehicles and hybrids. The PF2 is expected to support both ICE and electric powertrains, according to sources, as Honda is not yet convinced of the feasibility of developing a dedicated EV platform or “skateboard” amid declining demand for electric vehicles. “Like Toyota, Honda is leaning toward a multi-powertrain strategy,” one source said, although Honda has publicly stated that it will sell only electric vehicles or fuel cell cars by 2040.

1. Honda to launch new flagship SUV in 2027
2. Hybrid powertrain could be localized to meet future export demand
3. Honda focuses on internal combustion engines, hybrids and electric vehicles for India

With the PF2, Honda is hoping to regain its momentum. Honda Cars India Ltd (HCIL) sales have been falling and its base City sedan has seen volumes fall below 1,000 units per month, while the Elevate, which started strong with average monthly sales of around 4,500 units in the first five months, has also lost ground to its rivals, with volumes now hovering just above 2,000 units per month on average. However, exports of the Elevate have boomed, especially to Japan, where it is sold as the WR-V.

During the first quarter of this calendar year, 10,659 Indian-made WR-Vs were exported to Japan, almost double the number of domestic sales of the Elevate. In fact, according to a study recent report from Nikkei AsiaThe WR-V made Honda the country’s top imported car brand. The report also said the WR-V’s low price (2.1 million yen, or $13,200) was the main factor behind sales growth. Clearly, Honda’s strategy of making India a low-cost export hub has paid off.

The success of the WR-V in Japan has encouraged Honda to expand its business to India as an export base. Another reason could be to move away from Thailand, which has traditionally been Honda’s main manufacturing base for the region, but where Honda is facing an influx of Chinese automakers.

Are you considering revisiting hybrids?

In India, Honda has taken the first-mover advantage in the hybrid race, but it has been a half-hearted attempt. The City Hybrid, the country’s first mass-market powerful hybrid, has been priced out of the market. More bafflingly, Honda has decided not to offer a hybrid option for the Elevate, despite being a pioneer in hybrid technology and there being a growing demand for powerful hybrid SUVs. For Honda, a hybrid Elevate with a low level of localisation (unlike the Grand Vitara and the Hyryder) would have been too costly to produce and could have gone the way of the City Hybrid. However, after studying the market trends, the Japanese carmaker has rethought its strategy and is likely to invest in localisation of its hybrid powertrain to be more competitive in the hybrid race and has designed the PF2 platform from the ground up to be hybrid-ready. Furthermore, the growing demand for hybrids in major international markets has not gone unnoticed by Honda and low-cost hybrids from India would have great export potential.

All-new Honda 7-seater SUV in 2027

The first model to launch on the PF2 platform will likely be an all-new three-row SUV, positioned above the Elevate. Design and development of the seven-seater SUV is being led by Honda’s R&D centers in Japan and Thailand, but with plenty of input from India, which is expected to be the SUV’s primary market. Engine options are unclear, but we expect Honda to offer the seven-seater SUV with the same 1.5-liter naturally aspirated engine that powers the Elevate as well as a powerful hybrid option. According to a timeline shared with suppliers, production of the seven-seater SUV is scheduled to begin in October 2027.

A brand new city coming in 2028

The second model on the PF2 platform will be the next-generation Honda City, which is scheduled to undergo a model change in 2028. The next-generation or sixth-generation City is expected to be offered with a naturally aspirated petrol and hybrid option upon launch. The City will reportedly get a new styling and design language that will make it radically different from the current model. Production of the new City is expected to begin in May 2028.

Compact SUV early 2029

Industry sources have also confirmed that Honda is planning a compact SUV on the PF2 platform that could hit showrooms in the first half of 2029. Details are still sketchy as the project is not on the drawing board yet, but it is likely to be a sub-4-metre SUV. In fact, to keep costs low, the initial plan was to make the Elevate and a compact SUV on the Brio platform. However, given the export potential of the Elevate, Honda switched to the larger and more capable City platform. But the upgrade to the more expensive City platform made the compact SUV unviable from a cost perspective and so it was shelved.

Now, with the PF2 platform set to be heavily localized, Honda has the economies of scale to rethink the compact SUV segment that was briefly (and successfully) served by the WR-V crossover from 2017 to 2023. No engine details have been revealed yet, but the 1.5-liter petrol, the only engine Honda has localized, seems like the logical choice.

Honda’s second electric vehicle in 2029

Honda is planning a second EV in 2029 after the Elevate-based SUV that is scheduled to launch in 2026. There are no details on this EV yet, but it will likely be an SUV that slots below the Elevate. But unlike the Elevate EV that is part of the “ACE” (Asian Compact Electric) project, the second EV will also be built on the PF2 platform and will likely be an all-new model.

Honda Cars India had officially announced during the launch of the Elevate last year, that the company was planning to introduce 5 SUVs by 2030 which could be a mix of locally manufactured products and some CBUs.

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