In simple words, Horsepower is the measure of how much power an car engine can produce. How fast a car can perform like climbing a slope or accelerating from a stop. It is one of the performance parameter of an engine.
Scottish engineer James Watt came up with this unit by comparing output of steam engines to the power of horses. He finally deduced that, 1 mechanical horsepower is equivalent to a horse lifting 550 pounds till 1 feet in 1 sec.
Hence,
550 ft-lbs/sec [Hp] ~ 745.7 Watts
Higher the value of Horsepower of a car, higher is the performance and the faster the car can go.
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