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.
The proposal would be one of the largest manufacturing investments by a Chinese-affiliated company in India in recent years.
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. The sources, who requested anonymity, said Horse plans to develop cutting-edge hybrid engines and powertrains in the country.
The approval would be among the first since India relaxed regulations in March to allow foreign investments to boost domestic manufacturing, mainly targeting China.
Earlier, when state-owned SAIC Motor Corp. purchased General Motors Co.’s plant in 2017 to introduce the MG Motor brand in India, it was the last time a significant Chinese manufacturer made an investment in the country.
Following a restructuring, JSW Group and other Indian shareholders currently control the majority of the company.
Saudi Aramco then acquired a 10 per cent share in Horse Powertrain, which was founded in 2024 as an equal joint venture between Geely and Renault. According to its website, Geely and Renault currently own 45 per cent of the London-based company, which employs about 19,000 people and has 18 plants worldwide.
The firm would probably invest in India gradually, starting with Renault’s Chennai facility in southern India. According to people, 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.
Furthermore, 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, people added.
