India Set to Clear $370 Million Geely-Backed Investment as China Ties Improve, Bloomberg Reports

India is expected to approve an investment of roughly $370 million from Horse Powertrain Ltd., a hybrid-engine joint venture backed by China's Zhejiang Geely Holding Group Co., Bloomberg News reported, citing people familiar with the matter. According to the report, the move would be among the largest manufacturing investments from a Chinese-linked company in India in years.

The investment would allow Horse Powertrain — whose other major shareholder is France's Renault SA — to put capital into Renault's manufacturing operations in India, Bloomberg said. The people, who asked not to be named because the discussions are private, told Bloomberg that Horse plans to build advanced hybrid powertrains and engines in the country.

Per Bloomberg's reporting, the expected approval would be one of the first since India eased rules in March governing investment from countries that share a land border with it — a category that in practice applies primarily to China. The change was intended to encourage more local manufacturing.

Bloomberg noted that a Chinese automaker has not made a major investment in India since 2017, when state-owned SAIC Motor Corp. acquired a General Motors Co. plant to launch the MG Motor brand. That venture has since been restructured and is now majority-owned by Indian shareholders, led by JSW Group, according to the report.

According to Bloomberg, Horse Powertrain was established in 2024 as an equally owned joint venture between Geely and Renault; Saudi Aramco later acquired a 10% stake, reducing Geely's and Renault's holdings to 45% each. The report cited the company's website in noting that the London-headquartered firm operates 18 plants worldwide and employs around 19,000 people.

Bloomberg's sources said the India investment is likely to proceed in phases, beginning with Renault's existing plant in Chennai, where Horse would manufacture strong-hybrid powertrains — systems that pair a conventional combustion engine with high-capacity electric motors and a battery — for Renault and Nissan vehicles sold in India. Renault is Nissan's largest shareholder and already builds vehicles for the Japanese automaker at its South India facility, Bloomberg reported.

Renault is expected to introduce a Duster SUV in India later this year equipped with a Horse powertrain, according to the report. Bloomberg's sources added that Horse is also in early discussions to supply its technology to other automakers.

In a statement to Bloomberg News, Horse Powertrain said: "India is an important market for Horse Powertrain. 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."

Bloomberg said India's commerce ministry did not immediately respond to a request for comment.

The report noted that large-scale investment from Chinese entities into India has been infrequent since 2020, when New Delhi tightened foreign investment rules amid border tensions between the two countries. Bloomberg also pointed out that India said last year it would continue to limit market access for Chinese electric-vehicle maker BYD Co.

According to Bloomberg, the Horse deal also underscores the rising significance of hybrid vehicles in India, where automakers are expanding gasoline-electric offerings as buyers prioritize fuel efficiency, even as full electric-vehicle adoption continues at a slower pace. The report added that Renault and Nissan are both revising their approach to the Indian market after years of limited market share, focusing on SUVs and increased local manufacturing as they aim to grow their presence in one of the world's fastest-expanding auto markets. Bloomberg's reporting concluded that the Horse investment is expected to deepen local sourcing of advanced powertrain technology in India while reducing the country's reliance on imported components.