India is poised to approve a significant investment of approximately USD 370 million (around Rs 3,500 crore) by Horse Powertrain Ltd., the joint venture between Renault and China’s Geely, according to reports citing Bloomberg and other sources. This would mark one of the largest China-linked manufacturing investments in the country in recent years and boost local hybrid vehicle production.
Horse Powertrain, formed in 2024, is owned 45% each by Renault and Geely, with Saudi Aramco holding the remaining 10%. The UK-based entity focuses on developing and producing advanced internal combustion engines, hybrid systems, transmissions, and related technologies aimed at efficient decarbonization.
The investment is expected to roll out in phases, starting at Renault’s existing manufacturing plant in Chennai. Horse Powertrain plans to produce strong-hybrid powertrains — combining a traditional petrol internal combustion engine with high-capacity electric motors and batteries — for vehicles sold in India, with potential for exports.
This move aligns with India’s push for localized manufacturing and growing demand for hybrid vehicles, which offer a practical bridge between pure ICE and full EVs in a market sensitive to costs and infrastructure.
The upcoming Renault Duster hybrid, expected around Diwali 2026, is likely to be among the first models to use a locally manufactured powertrain from Horse. It will feature a 1.8-litre strong-hybrid E-Tech system (often referred to as E-Tech 160), delivering combined outputs around 160-163 hp, paired with a battery pack supporting substantial electric-only driving.
The Renault Bridger, a compact SUV (sub-4 metre) previewed by a concept and slated for launch around 2027, is also expected to use made-in-India hybrid engines from the JV. Production of the Bridger is planned in India for both domestic and international markets.
Beyond Renault and its alliance partner Nissan, Horse Powertrain is reportedly in talks to supply hybrid technology to other carmakers in India. Local production is expected to reduce reliance on imports (currently from facilities in Spain and Turkey) and lower costs over time.
A Renault spokesperson has confirmed that the company has submitted an application to Indian authorities and is following the official approval process.
This development comes as India has relaxed certain foreign direct investment rules for companies from bordering countries, aiming to attract manufacturing investments. For Renault, it strengthens its India strategy, enhances the competitiveness of models like the Duster, and supports broader powertrain localization goals.
The project is expected to create jobs, deepen the supplier ecosystem, and position India as a potential hub for hybrid powertrain exports.
Industry observers see this as a timely boost for hybrid adoption in India, where strong hybrids are gaining traction due to their fuel efficiency and lower running costs compared to pure petrol vehicles, without the range anxiety of EVs.
