Engine manufacturer Horse Powertrain is planning to enter the Indian market, capitalizing on increased demand for compact cars following recent tax reforms. The Indian government reduced the goods and services tax on small petrol cars (under four meters and with engines up to 1.2 liters) from 28% to 18%, prompting automakers to focus on smaller, efficient engines—an area where Horse specializes.

Founded in 2024 by separating the internal combustion engine divisions of Renault and Geely, Horse supplies petrol engines and hybrid powertrains to automakers transitioning toward electric vehicles. The company has already applied to establish a legal entity in India and expects approval by the third quarter of 2024, aiming to support the growing market for efficient small car engines.