India set to approve $370 million Renault Geely powertrain investment

India is expected to approve a $370 million investment from Horse Powertrain Ltd., a hybrid-engine joint venture backed by China's Zhejiang Geely Holding Group and France's Renault SA. This would mark one of the largest manufacturing investments from a Chinese-linked company in India in recent years, according to Bloomberg News.

Key Highlights

• India is likely to approve a $370 million horsepower powertrain investment from Renault and Geely.
• Horse Powertrain to build hybrid powertrains at Renault's Chennai plant in a phased approach.
• Renault to launch the Duster SUV in India with the Horse powertrain later this year.
• Horse Powertrain operates 18 plants globally and employs about 19000 people.

Details of the Proposed Investment

Horse Powertrain, established in 2024, is an equally owned joint venture between Geely and Renault. Saudi Aramco later acquired a 10% stake, reducing Geely's and Renault's holdings to 45% each. The London-headquartered company operates 18 plants worldwide and employs about 19,000 people.

The planned investment would allow Horse Powertrain to inject capital into Renault's manufacturing operations in India. The company intends to build advanced hybrid powertrains and engines in the country. The investment is expected to proceed in phases, starting with Renault's existing plant in Chennai. There, Horse Powertrain would manufacture strong-hybrid powertrains for Renault and Nissan vehicles sold in India. Strong-hybrid systems combine a conventional combustion engine with high-capacity electric motors and a battery.

Regulatory Context and Market Impact

The expected approval follows India's move in March to ease rules on investments from countries sharing a land border, a policy that mainly affects Chinese firms. The change aims to encourage more local manufacturing. Since 2020, large-scale Chinese investment in India has been rare due to tightened rules amid border tensions. The last major investment from a Chinese automaker was in 2017, when SAIC Motor Corp. acquired a General Motors plant to launch MG Motor. That venture is now majority-owned by Indian shareholders, led by JSW Group.

Horse Powertrain's investment would be among the first significant approvals since the regulatory change. In a statement to Bloomberg, Horse Powertrain confirmed it has submitted an application to Indian authorities and is awaiting a formal decision. India's commerce ministry did not immediately respond to requests for comment.

Industry Trends and Future Plans

Renault is Nissan's largest shareholder and already manufactures vehicles for Nissan at its South India facility. Renault is expected to launch a Duster SUV in India later this year, equipped with a Horse powertrain. Horse Powertrain is also in early discussions to supply its technology to other automakers.

The deal highlights the growing importance of hybrid vehicles in India. Automakers are expanding gasoline-electric offerings as buyers seek greater fuel efficiency, while full electric vehicle adoption progresses more slowly. Both Renault and Nissan are revising their strategies in India, focusing on SUVs and increased local manufacturing to boost their market share in one of the world's fastest-growing auto markets.

Also Read: Renault India begins global exports of the all‑new Renault Duster

CarBike 360 Says

​The proposed investment marks a significant step in India’s transition toward advanced and sustainable mobility solutions. By strengthening local manufacturing capabilities and encouraging global collaborations, the move is expected to enhance technological innovation and supply chain resilience. As Renault and Geely deepen their footprint, India continues to position itself as a key hub for next-generation powertrain development and automotive growth.