Horse Powertrain Plans Manufacturing Expansion in India to Meet Small Car Demand
Engine maker Horse plans India move to supply growing small car market, CEO says
The Economic TimesImage: The Economic Times
Horse Powertrain, an engine manufacturer based in Madrid, is preparing to establish a manufacturing presence in India following a reduction in federal sales tax on small cars from 28% to 18%. This move aims to cater to the growing demand for compact vehicles in the Indian market, with plans to supply both locally and for export.
- 01Horse Powertrain is set to establish a manufacturing presence in India.
- 02The Indian government reduced the sales tax on small cars from 28% to 18%.
- 03The company aims to supply compact vehicle engines, particularly 1.2-litre efficient engines.
- 04Horse Powertrain plans to initially partner with local firms before moving to local manufacturing.
- 05The company is in discussions with top-tier carmakers for potential contracts.
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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.
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The entry of Horse Powertrain into the Indian market could lead to increased availability of efficient small car engines, benefiting consumers and potentially lowering vehicle prices.
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