India is likely to approve an investment of about $370m by Geely-backed Horse Powertrain in Renault’s manufacturing business in the country, Bloomberg reported citing unnamed sources.

The UK-based company plans to make advanced hybrid powertrains and engines in India, with the investment expected to be rolled out in stages starting at Renault’s Chennai plant.

The company aims to supply strong-hybrid powertrains for Renault and Nissan vehicles sold in India.

These systems combine a traditional internal combustion engine with high-capacity electric motors and a battery.

Renault is the largest shareholder in Nissan Motor and produces vehicles for the Japanese carmaker at its plant in southern India.

Renault is also expected to introduce the Duster sport utility vehicle in India later this year, using Horse Powertrain technology.

In addition, the company is in early talks with other vehicle manufacturers on possible powertrain supply agreements.

Horse Powertrain told Bloomberg it had begun the formal process for regulatory approval.

"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," it said in a statement to Bloomberg News.

If approved, the investment would be among the first to receive clearance under rules revised by India in March.

Those changes permit investments from neighbouring countries when linked to domestic manufacturing, in a shift aimed mainly at Chinese investors.

Horse Powertrain was formed in 2024 as a joint venture between Geely and Renault, which each own 45%, while Saudi Aramco holds the remaining 10%.

The business runs 18 plants globally and employs around 19,000 people.