Horse Powertrain, the powertrain joint venture between Renault and Geely, is expected to receive approval for an investment of around USD 370 million (approximately Rs. 3500 crore) in India, according to a Bloomberg report. If cleared, the proposal would rank among the largest manufacturing investments involving a China-linked company in the country in recent years.
The investment is expected to be rolled out in phases, beginning with Renault’s manufacturing facility in Chennai. The company plans to localise production of strong-hybrid engines and powertrains for future Renault and Nissan models, a move that could help improve localisation levels and reduce dependence on imported components.
One of the first products expected to benefit from the locally manufactured powertrain is the upcoming Renault Duster Hybrid, which is set to use Horse’s 1.8-litre strong-hybrid system. The Renault Bridger SUV, expected to follow the Duster, is also likely to feature a powertrain developed by the joint venture.
Horse Powertrain was formed in 2024 by Renault and Geely, with both companies holding a 45 percent stake after Saudi Aramco acquired the remaining 10 percent. The proposed investment follows Renault’s recent announcement that it intends to separate its powertrain manufacturing operations in India into a standalone business as part of a wider restructuring strategy.
Horse Powertrain confirmed that it has applied for approval to invest in India and is awaiting a decision from the authorities.
The development comes at a time when hybrid vehicles are witnessing increasing demand in the Indian market, prompting manufacturers to expand their electrified offerings. Horse is also exploring opportunities beyond Renault and Nissan, with the company holding discussions with other automakers for potential technology partnerships and co-development projects.
If approved, the investment would also reflect India’s evolving foreign investment policy. Earlier this year, the government eased investment norms for neighbouring countries to encourage domestic manufacturing. Local production by Horse could also support future export opportunities from India, in line with the company’s long-term expansion plans.
