India is expected to approve an investment of around USD 370 million (approximately Rs 3,500 crore) by Horse Powertrain, a joint venture between Renault and Geely, according to a Bloomberg report. If approved, the investment would rank among the largest manufacturing investments by a Chinese-linked company in India in years and allow Horse to invest in Renault’s manufacturing operations in Chennai.
- Hybrid powertrains could be manufactured at Renault’s Chennai plant
- Renault Duster Hybrid to use Horse-developed powertrain
- Horse also in talks to supply technology to other carmakers
Horse Powertrain was established in 2024 as a joint venture between Renault and Geely. Saudi Aramco later acquired a 10 percent stake, leaving Renault and Geely with 45 percent each. The proposed investment also comes weeks after Renault announced plans to separate its powertrain manufacturing business into a dedicated entity in India as part of a broader restructuring of its local operations.
Horse Powertrain’s manufacturing investment in India
According to Bloomberg, the investment will be implemented in phases, beginning with Renault’s Chennai plant. Horse plans to manufacture strong-hybrid powertrains and engines locally for future Renault and Nissan models sold in India, increasing localization and reducing reliance on imported components.
The upcoming Renault Duster Hybrid will use a 1.8-litre strong hybrid powertrain that’s developed by Horse powertrain. The Bridger compact SUV, expected to follow the Duster, is likely to receive a Horse powertrain too.
In a statement to Bloomberg News, Horse Powertrain said: “India is an important market for Horse Powertrain. We can confirm that we have submitted an application to the Indian authorities to have the right to invest in India and are following the official process. We are expecting a formal decision soon.”
The investment also comes as hybrid vehicles gain traction in India, with several manufacturers expanding their electrified SUV line-ups.
Approval would mark a policy shift
The approval would be among the first major Chinese-linked manufacturing investments since India eased foreign investment rules for neighboring countries earlier this year to encourage more local manufacturing. A Chinese automaker has not made a major investment in India since 2017, when state-owned SAIC Motor Corp. acquired a General Motors Co. plant to launch the MG Motor brand. That venture has since been restructured and is now majority-owned by Indian shareholders, led by JSW Group.
Speaking to Autocar India earlier this year, Carolina Mechai, Chief Sales and Business Development Officer at Horse Powertrain said the company was evaluating multiple routes to expand its presence in India beyond Renault. “We are discussing with our key partner and customer here (Renault), but also with other partners. It could be through development or co-development,” she said, adding that local manufacturing could eventually support exports from India.
