PM Modi inspects an engine with technicians at an Indian automotive plant.
Horse Powertrain is evaluating an entry into the Indian market, signaling a strategic move to supply the nation’s burgeoning small car segment. The company’s potential expansion is driven by recent policy shifts that are boosting demand for compact, fuel-efficient automobiles.
Specifically, the Indian government’s decision under Prime Minister Narendra Modi to reduce sales tax on compact vehicles has spurred significant interest in engines with a displacement of 1.2 litres. This has created a favorable environment for engine manufacturers like Horse Powertrain to consider establishing a local operational base.
The move by Horse Powertrain, an engine manufacturer, highlights the growing attractiveness of the Indian automotive sector for international suppliers. As global automotive players continue to invest in India, component suppliers are increasingly looking to set up local manufacturing and support operations to better serve these markets.
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