India is likely to approve an investment of approximately $370 million from Horse Powertrain Ltd., a hybrid-engine company backed by China's Zhejiang Geely Holding Group Co., according to people familiar with the matter. The deal would enable Horse Powertrain, whose other major shareholder is Renault SA, to invest in the French automaker's manufacturing operations in India and develop cutting-edge hybrid engines and powertrains in the country.
Approval Would Mark a Shift in India's China-Linked Investment Policy
The approval would be one of the largest manufacturing investments by a Chinese-affiliated company in India in recent years and among the first since India relaxed regulations in March to allow foreign investments to boost domestic manufacturing, mainly targeting China. The last significant Chinese manufacturer investment in India occurred in 2017 when state-owned SAIC Motor Corp. purchased General Motors Co.'s plant to introduce the MG Motor brand. Following a restructuring, JSW Group and other Indian shareholders now control the majority of that company.
Structure and Global Presence of Horse Powertrain
Founded in 2024 as an equal joint venture between Geely and Renault, Horse Powertrain is based in London and employs about 19,000 people across 18 plants worldwide. Saudi Aramco later acquired a 10% share in the company. According to its website, Geely and Renault currently each own 45% of the firm.
Investment Plan and Impact on Indian Operations
The investment would likely be phased, starting with Renault's Chennai facility in southern India. Horse will supply strong-hybrid powertrains for Nissan and Renault automobiles sold in India, according to sources. 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.
Upcoming Models and Future Prospects
Renault plans to introduce a Duster sport utility vehicle powered by Horse in India later this year. Horse is also in early discussions about delivering its powertrains to other manufacturers, sources added. The investment underscores India's evolving stance on foreign direct investment from China-linked entities, aiming to boost domestic manufacturing while navigating geopolitical sensitivities.
