Horse Powertrain Likely To Enter India Ahead Of Renault Duster Hybrid Launch

Horse Powertrain plans to enter India with a USD 370 million investment to support local hybrid production

Horse Powertrain, a global company focused on engines and hybrid systems, is getting ready to start its work in India. This move has a close link to the new Renault Duster strong hybrid, which will arrive in India by Diwali 2026. The Duster has already returned to India with two turbo petrol engines. Horse Powertrain plans to invest about USD 370 million in India, which will help make hybrid parts locally  .

Who is Horse Powertrain?

Horse Powertrain is a company backed by big names like Renault Group, Geely, and Saudi Aramco but it does not manufacture whole cars. Instead, it focuses on making important parts for vehicles like Engines, Hybrid systems, Transmissions, Range extenders and Integrated powertrain modules

Renault and Geely first created Horse Powertrain in July 2023 with 50:50 joint venture to cover internal combustion, hybrid, and plug-in hybrid engines and transmissions. Later, Aramco bought a 10% share in the company, leaving Renault and Geely with 45% each. Aramco’s role involves research into synthetic fuels, e-fuels, and hydrogen.

Globally, Horse Powertrain has a large setup. It includes:

• 17 engine plants

• 5 research and development centers

• Operations across three continents

• Around 19,000 employees

• An annual capacity of up to five million engines and transmissions

Its early customers include Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, Mitsubishi Motors, and Punch Torino. Renault and Geely also planned purchase agreements for ICE, hybrid, and plug-in hybrid powertrains giving the venture a supplier role across several brands from the start.

Horse Powertrain's Plans for India

For India, Horse Powertrain will focus on advanced hybrid engines and full-hybrid powertrains. These will first go into Renault and Nissan models. The proposed USD 370 million investment will likely go into Renault’s manufacturing operations, starting with the Renault-Nissan factory near Chennai  .

Horse CEO Matias Giannini earlier told Reuters that the company filed to set up a legal entity in India. He expected progress by the third quarter of 2026. Initial steps might involve partnerships and bringing in systems from Horse facilities outside India before they start making parts locally . The Chennai location gives the project a direct link to Renault and Nissan’s existing operations.

Impact on the Renault Duster Hybrid

The new Renault Duster strong hybrid will use a 1.8-litre petrol engine combined with a 1.4 kWh battery pack. This hybrid Duster is part of a bigger plan for new Renault-Nissan cars in India. Renault has also started sending the new Duster from India to other countries. This means a local hybrid supply chain could help both cars sold in India and those sent abroad over time .

Full-hybrid vehicles have become more popular in India. They help save fuel without needing public charging stations. Local production by Horse Powertrain could help Renault and Nissan offer hybrid SUVs at better prices. This will also make them less dependent on imported parts.

Addressing Concerns

After border tensions with China in 2020, India has looked more closely at large manufacturing plans linked to Chinese companies. Large Chinese-linked manufacturing proposals have faced tougher review since then. Horse Powertrain has a link to Geely, a Chinese company. However, its structure as a global supplier of car parts, rather than a Chinese car brand entering India, helps address these concerns

Gaadi Journal's Analysis

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