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, this will be one of the largest manufacturing investments by a China-linked company in the country in years, allowing Horse to invest in Renault’s Chennai facility.
- Hybrid powertrains could be manufactured at Renault’s Chennai facility
- Renault Duster hybrid to use Horse-developed powertrain
- Horse is also in talks to supply technology to other carmakers
The proposed investment 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 was established in 2024, and Saudi Aramco later acquired a 10 percent stake, leaving Renault and Geely with 45 percent each.
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 localisation and reducing reliance on imported components.
The upcoming Renault Duster hybrid will use a 1.8-litre strong-hybrid powertrain developed by Horse. The Bridger compact SUV, expected to follow the Duster, is also likely to receive a powertrain from the same JV.
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 the country, with several manufacturers expanding their electrified SUV line-ups.
Approval would mark a policy shift
India eased foreign investment rules for neighbouring countries earlier this year to encourage more local manufacturing. A Chinese automaker has not made any major investment in the country since 2017, when state-owned SAIC Motor Corporation acquired a General Motors 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, Carolina Mechai, chief sales and business development officer at Horse Powertrain, had previously said the company was evaluating multiple routes to expand its presence in India beyond Renault. “We are [not only] 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.