India is preparing to approve an investment of around $370 million by Horse Powertrain, a hybrid-engine manufacturing joint venture backed by China’s Zhejiang Geely Holding Group and French automaker Renault SA, Bloomberg reported.
If cleared, the move would represent one of the most significant Chinese-linked manufacturing investments in India in recent years.
The proposed approval would allow Horse Powertrain to invest in Renault’s manufacturing facilities in India. The company plans to set up production capabilities for advanced hybrid powertrains and engine systems in the country.
These hybrid systems combine traditional internal combustion engines with electric motors and batteries, supporting growing demand for fuel-efficient vehicles.
The investment is expected to be rolled out in phases, beginning with Renault’s manufacturing plant in Chennai. The initial focus will be on producing strong-hybrid powertrains for vehicles under the Nissan and Renault brands sold in the Indian market.
Renault is a key shareholder in Nissan Motor and already manufactures vehicles for the Japanese company in India.
Horse Powertrain was formed in 2024 as a 50:50 joint venture between Geely and Renault, with Saudi Aramco later acquiring a 10% stake.
The company is headquartered in London and operates 18 manufacturing plants globally, employing approximately 19,000 people.
The India approval would mark one of the first major relaxations of foreign investment rules for companies from bordering nations since March, when India eased restrictions aimed primarily at China to encourage manufacturing investment.
Since border tensions escalated in 2020, India has largely restricted large Chinese investments, with very few approvals granted in recent years.
The last major Chinese automotive investment in India occurred in 2017 when SAIC Motor acquired a General Motors plant to launch MG Motor, which is now majority-owned by Indian stakeholders led by the JSW Group.
Horse Powertrain has indicated that India is a strategically important market and has already submitted its application for regulatory approval.
The company expects a formal decision soon and is also exploring supply opportunities with other automakers in India.
The move aligns with India’s broader push to position itself as a global manufacturing hub while supporting rising demand for hybrid vehicles, as consumers increasingly shift towards fuel-efficient technologies ahead of full-scale electric vehicle adoption.
Renault and Nissan are simultaneously recalibrating their India strategy, focusing on SUVs and local production expansion to strengthen their presence in one of the world’s fastest-growing auto markets.
