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Horse Powertrain Eyes India for Engine Manufacturing
25 Apr
Summary
- Engine maker Horse Powertrain is planning a manufacturing presence in India.
- India's tax reduction on small cars boosted demand for efficient engines.
- The company aims to supply and export from India once local manufacturing begins.
Horse Powertrain, a newly formed engine manufacturer, is laying the groundwork for establishing a manufacturing presence in India. This decision is prompted by recent regulatory shifts in India's automotive sector, which have spurred demand for compact vehicles. Specifically, a reduction in federal sales tax on small cars, defined by length and engine capacity, has created a favorable market.
The company's CEO stated that this environment creates a strong demand for efficient 1.2-litre engines, an area where Horse Powertrain can provide solutions. Formed in 2024 from the combustion engine divisions of Renault and Geely, Horse Powertrain supplies essential fossil-fuel and hybrid systems to automakers navigating the transition to electric vehicles.
Horse Powertrain has initiated the process to set up its own legal entity in India, with an anticipated positive outcome in the third quarter of 2026. The initial phase in India is expected to involve partnerships and importing components, followed by local manufacturing. Beyond serving domestic demand, the company intends to utilize India as an export hub. Horse Powertrain also operates facilities across Europe, China, and Latin America, and is currently in discussions with top-tier car manufacturers for potential large contracts.
