India is set to approve a roughly $370-million investment from Horse Powertrain Ltd., a hybrid-engine venture backed by China’s Zhejiang Geely Holding Group Co., that would mark one of the biggest manufacturing investments from a Chinese-linked company in years.
The deal would enable Horse Powertrain, whose other major shareholder is Renault SA, to invest in the French carmaker’s manufacturing operations in India, according to people familiar with the matter. Horse intends to build advanced hybrid powertrains and engines in the country, said the people, who asked not to be identified discussing private deliberations.
The clearance would be one of the first since India relaxed rules in March for investments from bordering countries to support local manufacturing — a move aimed primarily at China.
The last time a major Chinese automaker invested in India was in 2017, when state-owned SAIC Motor Corp. bought General Motors Co.’s plant to launch the MG Motor brand in the country. That business was subsequently restructured and is now majority owned by Indian shareholders, led by JSW Group.
Horse Powertrain was created in 2024 as an equal joint venture between Geely and Renault, and Saudi Aramco subsequently took a 10% stake in the company. Geely and Renault now each own 45% of the London-headquartered business, which has 18 plants globally and around 19,000 employees, according to its website.
The company is likely to make its India investment in stages, beginning with Renault’s Chennai plant in southern India. Horse will manufacture strong-hybrid powertrains, which combine a traditional internal combustion engine with high-capacity electric motors and a battery, for Nissan and Renault vehicles sold in India, said the people familiar with the matter. Renault is the biggest shareholder of Japan’s Nissan Motor Co. and manufactures cars for it at its South India factory.
Renault is expected to launch a Duster sport utility vehicle in India later this year powered by Horse, which is also in preliminary discussions about supplying its powertrains to other automakers, the people said.
“India is an important market for Horse Powertrain,” the company said in a statement to Bloomberg News. “We can confirm that we have submitted an application to the Indian authorities to have the right to invest in India and are following the official process. We are expecting a formal decision soon.”
The Commerce Ministry didn’t immediately respond to an emailed request for comment.
India has become an increasingly important manufacturing hub for global automakers seeking to diversify supply chains and tap growing domestic demand. Yet large investments involving Chinese entities have been rare since New Delhi tightened foreign investment rules after border tensions with China in 2020. India last year said it would continue to restrict Chinese EV maker BYD Co.’s market access.
Horse’s entry into India also highlights the growing importance of hybrid vehicles in the world’s most populous country. Automakers are increasingly offering gasoline-electric models as consumers seek better fuel economy, while electric vehicle adoption remains gradual.
Renault and Nissan are reworking their India strategy after years of modest market share, betting on sport utility vehicles and localised manufacturing to expand their presence in one of the world’s fastest-growing auto markets. The Horse investment is expected to deepen local sourcing of advanced powertrain technology while reducing reliance on imports.
More stories like this are available on
©2026 Bloomberg L.P.