India to approve $370 million Horse Powertrain investment backed by Geely and Renault for hybrid powertrain production

Geely-Renault JV hybrid powertrain company, Horse Powertrain’s $370 million investment in India is on the verge of being approved, as per Bloomberg. Once approved, it would become one of the biggest manufacturing investments involving a Chinese-linked company in the country in recent years. In addition to that, the company plans to invest in Renault’s manufacturing operations to produce advanced hybrid engines and powertrains. The investment would further strengthen India as a manufacturing hub for EVs, as hybrid technology would be localised in the country.

Horse Powertrain: Investment

The approval would mark one of the first major Chinese-linked investments since the Indian government relaxed foreign investment rules for neighbouring countries earlier this year to encourage domestic manufacturing. Investments involving Chinese firms have remained limited since India tightened regulations following the 2020 border tensions.

Notably, the investment is expected to be rolled out in phases, beginning at Renault's manufacturing facility in Chennai. The plant will manufacture strong-hybrid powertrains that combine petrol engines with electric motors and battery systems. The locally produced powertrains are expected to power future Renault and Nissan models sold in India.

One of the first vehicles likely to benefit from the localisation effort is the upcoming Renault Duster, which is expected to arrive later this year with a Horse-developed 1.8L strong hybrid powertrain. The company is reportedly in preliminary discussions with other automakers to supply hybrid powertrain technology.

This sits well with the Indian government, considering its relentless push to adopt cleaner and sustainable sources of energy, including electric, ethanol and hybrid-powered vehicles. The company confirmed that India is an important market for its future growth and stated that it has submitted its investment proposal to the Indian authorities and is awaiting a formal decision.

Horse Powertrain: History

Horse Powertrain was established in 2024 as a joint venture between Geely and Renault, with both companies initially holding equal stakes. Saudi Aramco later acquired a 10 per cent stake, leaving Renault and Geely with 45 per cent ownership each. Headquartered in London, the company operates 18 manufacturing facilities worldwide.

The $370 million investment is expected to support Renault and Nissan's latest strategy for the Indian market, which focuses on SUVs, increased localisation and advanced powertrain technologies.

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