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India Poised to Approve $370 Million Geely–Renault Powertrain Investment

The pending clearance would let Horse Powertrain build strong-hybrid units in India by enabling local production under eased foreign-investment rules.

Employee works inside the newly inaugurated VinFast manufacturing plant of Vinfast Asia in Thoothukudi, Tamil Nadu, India, on Monday, Aug 4 , 2025. Photographer: Dhiraj Singh/Bloomberg.
Horse Powertrains' P2 hybrid module that reduces the front overhang by 150 mm, making it easier to package hybrid systems into vehicles originally designed for ICE powertrains.
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Horse Powertrain has developed a compact hybrid powertrain that integrates the engine, gearbox and electric motors into an EV-ready architecture

Overview

  • Indian officials are preparing to approve about $370 million for Horse Powertrain, the Geely–Renault joint venture that says it has submitted an application and expects a formal decision soon.
  • The investment would be rolled out in phases starting at Renault’s Chennai plant to make strong-hybrid powertrains, which combine an internal combustion engine with electric motors and a battery, for Renault and Nissan models.
  • Horse Powertrain is a 2024 JV now owned 45% by Geely, 45% by Renault and 10% by Saudi Aramco, and the company operates 18 plants globally with roughly 19,000 employees.
  • Approval would be one of the first major relaxations since New Delhi eased rules in March for investments from neighbouring countries and would rank among the largest Chinese-linked manufacturing approvals in India since 2017.
  • Reports say Renault’s upcoming Duster Hybrid is expected to use a Horse-developed 1.8-litre strong-hybrid powertrain and the move could lower component imports, speed local sourcing and make hybrid models more affordable for Indian buyers.