Renault-Geely JV: Rs 3500 Crore India Powertrain Boost
Renault-Geely JV: Rs 3500 Crore India Powertrain Boost is set to transform the automotive landscape as Horse Powertrain, the joint venture between Renault and Geely, awaits government approval for a massive investment of around USD 370 million (approximately Rs. 3,500 crore) in India, as reported by Bloomberg. If cleared, this proposal would rank among the largest manufacturing investments involving a China-linked company in the country in recent years. The Renault-Geely JV aims to begin with Renault’s Chennai manufacturing facility, rolling out the investment in phases to localize production of strong-hybrid engines and powertrains for future Renault and Nissan models.
The Renault-Geely JV plans to boost localization levels and reduce reliance on imported components, with the upcoming Renault Duster Hybrid expected to be one of the first models to benefit from Horse’s 1.8-liter strong-hybrid system. The Renault Bridger SUV, anticipated to follow, is also likely to feature a powertrain developed by this joint venture. Horse Powertrain was formed in 2024, with Renault and Geely each holding a 45 percent stake after Saudi Aramco acquired the remaining 10 percent.
This proposed investment follows Renault’s recent announcement to separate its powertrain manufacturing operations in India into a standalone business as part of a wider restructuring strategy. Horse Powertrain has confirmed it applied for approval, awaiting a decision amid rising demand for hybrid vehicles in the Indian market. The Renault-Geely JV is also exploring opportunities beyond Renault and Nissan, holding discussions with other automakers for potential technology partnerships.
If approved, the Renault-Geely JV reflects India’s evolving foreign investment policy, especially after the government eased norms for neighboring countries to encourage domestic manufacturing. Local production by Horse could also support future export opportunities from India, aligning with long-term expansion plans, making this a significant step for sustainable mobility in the country.
