Horse Powertrain, an engine manufacturer formed from the combustion engine operations of Renault and Geely, is planning to enter the Indian market to capitalize on the growing demand for small cars. Following a significant tax reduction by the Indian government, which lowered the federal sales tax on compact vehicles from 28% to 18%, the company sees an opportunity to supply efficient 1.2-litre engines. CEO Matias Giannini announced that Horse has filed to establish its own legal entity in India and anticipates a positive outcome by the third quarter of this year. Initially, the firm plans to combine partnerships with local companies and import engines before transitioning to local manufacturing. Horse Powertrain operates 18 plants and five research and development centers globally, serving major automotive clients including Renault, Geely, Volvo, Mercedes-Benz, and Nissan. Giannini expressed optimism about securing significant contracts with top-tier car manufacturers in India.