TL;DR
Global engine maker Horse Powertrain plans to enter India to capitalize on the rising demand for compact vehicles, driven by recent government tax cuts on small cars.
Global engine manufacturer Horse Powertrain is preparing to establish a manufacturing presence in India. This strategic move comes as regulatory changes in the Indian market have significantly boosted demand for compact vehicles, particularly those with engine capacities of 1.2 liters or below. The Indian government's decision to cut federal sales tax on small cars to 18% from 28% in September has spurred this increased interest.
Horse Powertrain, formed from the combustion engine operations of Renault and Geely, specializes in supplying fossil-fuel engines and hybrid systems. The company views India as a crucial market for its efficient 1.2-liter engines, which are now highly sought after due to the tax revisions. Horse has already filed to set up its own legal entity in India, with a positive outcome anticipated by the third quarter of this year, indicating a significant upcoming investment in the country's automotive manufacturing landscape.
