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Proposed USD 370 million India plan links Renault-Nissan Chennai plant with Horse Powertrain’s global hybrid and ICE engine business
The new Renault Duster strong hybrid is the closest product link to Horse Powertrain’s proposed India entry. The SUV has already returned to India with two turbo petrol mills and Renault has confirmed Diwali 2026 timeline for the E-Tech hybrid version. The setup pairs a 1.8-litre petrol engine with a 1.4 kWh battery pack.
The hybrid Duster is part of a larger Renault-Nissan product cycle for India. The same Chennai factory also serves Nissan and upcoming models from both brands could draw from a localised hybrid supply chain once Horse Powertrain begins manufacturing activity here as it is preparing a proposed USD 370 million investment in India.
The company is backed by Renault Group, Geely and Saudi Aramco and the money is expected to enter Renault’s manufacturing operations starting with the Renault-Nissan factory near Chennai. The company is not a vehicle manufacturer. Its work encompasses engines, hybrid systems, transmissions, range extenders and integrated powertrain modules.
For India, the plan centres on advanced hybrid engines and full-hybrid powertrains – first for Renault and Nissan models mostly. It must be noted that Horse Powertrain came out of Renault and Geely’s global engine and hybrid business plan. The two companies signed a binding 50:50 joint venture agreement in July 2023 for a company covering internal combustion, hybrid and plug-in hybrid engines and transmissions.
The original plan had a large industrial base. Renault and Geely listed 17 engine plants, five R&D centres, operations across three continents and around 19,000 employees, and the annual capacity was targeted at up to five million engines and transmissions. The early customer list named 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. Aramco later acquired a 10 per cent stake in Horse Powertrain. Renault and Geely then moved to 45 per cent ownership each. Aramco’s role is tied to synthetic fuels, e-fuels and hydrogen research.
The tightened scrutiny on companies from neighbouring countries after the 2020 border tensions with China and large Chinese-linked manufacturing proposals have faced tougher review since then. Horse carries a Geely link but its structure places the project inside a global powertrain supplier instead of a Chinese car brand entry.
Horse CEO Matias Giannini had earlier told Reuters that the company had filed to set up a legal entity in India and expected progress by the third quarter of 2026. Initial steps could involve partnerships and imported systems from Horse facilities overseas before local manufacturing deepens. The Chennai location gives the project a direct Renault-Nissan connection.
Renault has also started exports of the new Duster from India which means a local hybrid supply base could support domestic models and export programmes over time. Full-hybrid vehicles have gained space in India because they cut fuel consumption without relying fully on public charging access. Local Horse production could help Renault and Nissan price hybrid SUVs more competitively while reducing dependence on imported systems.
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