Horse Powertrain Ltd., a hybrid-engine firm supported by China's Zhejiang Geely Holding Group Co., is scheduled to approve a $370 million investment from India. This would be one of the largest manufacturing investments from a Chinese-affiliated company in recent memory.
According to persons familiar with the situation, the deal would allow Horse Powertrain, whose other significant shareholder is Renault SA, to invest in the French automaker's production activities in India. According to those who spoke on private discussions and asked not to be named, Horse plans to develop cutting-edge hybrid engines and powertrains in the nation.The approval would be among the first since India loosened regulations in March to allow foreign investments to boost domestic manufacturing, mainly targeting China.
The last significant Chinese carmaker to make an investment in India was in 2017, when the state-owned SAIC Motor Corp. acquired General Motors Co.'s facility in order to introduce the MG Motor brand there. Following a restructuring, JSW Group and other Indian shareholders currently control the bulk of the company.
Saudi Aramco then acquired a 10% share in Horse Powertrain, which was established in 2024 as an equal joint venture between Geely and Renault. According to the company's website, Geely and Renault currently own 45% of the London-based company, which employs about 19,000 people and has 18 plants worldwide.

The approval would be among the first since India loosened regulations in March to allow foreign investments to boost domestic manufacturing, mainly targeting China.
The business would probably invest in India gradually, starting with Renault's Chennai facility in southern India. According to sources acquainted with the situation, Horse will provide strong-hybrid powertrains for Nissan and Renault automobiles sold in India. These powertrains combine a conventional internal combustion engine with high-capacity electric motors and a battery. Renault produces automobiles for Nissan Motor Co. in South India and is the company's largest stakeholder.

According to the sources, Renault plans to introduce a Duster sport utility vehicle powered by Horse in India later this year. Horse is also in early talks about delivering its powertrains to other manufacturers.
Horse Powertrain stated in a statement to Bloomberg News that "India is an important market." "We can attest that we are according to the formal procedure and have applied to the Indian authorities for the permission to invest in India. A official decision is anticipated shortly.An email requesting comment was not immediately answered by India's commerce minister.For international automakers looking to diversify supply chains and meet rising local demand, India has grown in importance as a manufacturing base.

However, after New Delhi tightened foreign investment regulations following border tensions with China in 2020, such projects involving Chinese businesses have been uncommon. Last year, India declared that it would keep limiting the market access of Chinese electric vehicle manufacturer BYD Co.
The arrival of Horse in India further demonstrates the increasing significance of hybrid cars in the most populous nation on earth. While the adoption of electric vehicles is still slow, automakers are increasingly producing gasoline-electric hybrids as buyers seek greater fuel efficiency.
In order to increase their footprint in one of the fastest-growing auto markets in the world, Renault and Nissan are rethinking their approach in India after years of having a small market share. They are placing their bets on sport utility vehicles and regional manufacturing. It is anticipated that the Horse investment will increase domestic sourcing of cutting-edge powertrain technology while lowering dependency on imports.