Honda is now working on a range of hybrid cars for the Indian market.

With electric vehicle (EV) demand and sales reaching a saturation point in many markets, many OEMs are shifting their focus to hybrid powertrains. Honda has been one of the strongest proponents of hybrid vehicles in India, but the Japanese carmaker has started to reevaluate its hybrid strategy for our market.

The Japanese carmaker was one of the first mass-market OEMs to venture into the hybrid vehicle market when it launched the City e: HEV in 2022. Powered by a 1.5-litre strong hybrid petrol engine, this powertrain churns out 124 bhp and returns a mileage of 26.5 kmpl. And even though the City e: HEV doesn’t have a large volume to show for itself, it has showcased Honda’s capabilities as far as hybrid powertrain technology is concerned.

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Honda is now working on a range of hybrid cars for the Indian market. At the heart of this new hybrid strategy is a brand new platform. Codenamed PF2, this new modular, hybrid-compatible architecture is expected to be significantly localised. This will help all keep the cost of all the models underpinned by this platform. Many components in the current platform underpinning City e: HEV are sourced from outside, which raises the overall cost of production.

Honda is expected to leverage the new PF2 platform to introduce a new lineup of SUVs and crossovers, including the next-generation City, targeting the Rs 15 lakh to Rs 30 lakh price bracket. This segment is anticipated to see growing demand for hybrid technology, especially with stricter CAFE (Corporate Average Fuel Economy) norms on the horizon.

The move is in line with Honda’s global strategy to expand its hybrid portfolio as part of its broader electrification goals. By focusing on localised manufacturing, a hybrid-ready platform, and a deeper understanding of Indian consumer preferences,

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Honda aims to establish a more sustainable and competitive hybrid presence in the market—striking a better balance between performance, efficiency, and affordability than its earlier efforts.

Honda is strategically re-evaluating its hybrid vehicle approach for India, shifting focus from its costly City e:HEV. The new plan centres on a highly localised, modular PF2 platform, designed to underpin more affordable SUVs, crossovers, and the next-gen City in the ₹15-30 lakh segment. This move aligns with Honda’s global electrification goals and stricter CAFE norms, aiming for a more sustainable and competitive hybrid presence balancing performance, efficiency, and crucial affordability in the Indian market.