Horse Powertrain Bets on Hybrid Future Amid EV Surge

The shift toward zero-emission vehicles is picking up speed, but internal combustion engine (ICE) and hybrid models will still play a big role in the global car market over the next 15 years.

That’s according to Matias Giannini, CEO of Horse Powertrain, a joint venture between France’s Renault Group and China’s Geely Holding Group.

Giannini said different regions and customer needs mean there’s no one-size-fits-all solution to cleaner mobility. He expects up to 50% of cars on the road by 2040 will still use high-efficiency ICE or hybrid systems — and Horse is ready to meet that demand.

At the Shanghai show the company debuted a new super-hybrid concept - a compact, lightweight system combines the engine and transmission in one module, supports multiple fuel types, and is compatible with EV platforms. 

Production of vehicles using this system is expected to begin by 2028.

Horse Powertrain was established in May 2024 to focus on the global development, manufacturing, and sales of ICE and hybrid powertrains. The Renault and Geely partnership brings together ICE and hybrid assets from both companies under two main units — Renault Horse and Geely Aurobay.

Presently, Horse operates five R&D centers, 17 factories, and employs 19,000 people worldwide. Its engines power vehicles from brands like Volvo and Renault and the company says its offerings now cover about 80% of global demand for ICE and hybrid passenger cars.

Giannini noted that cost remains a key factor in today’s competitive market. By combining assets from both Geely and Renault, Horse is able to offer a 20% cost advantage over traditional ICE and hybrid solutions.

Adding to the conversation, Geely Auto CEO Gui Shengyue had stressed in December 2024 that the industry shouldn’t abandon ICE vehicles too quickly. He urged automakers to focus on profitability, noting that ICE cars are still a major source of revenue.

Gui said that while EVs are growing fast, they don’t fully represent the sector’s transformation. If carmakers stop making ICE vehicles, they risk losing a key engine of profit growth. He expects ICE cars to continue making up around 30% of global sales due to consumer demand and limited charging infrastructure. Hybrids are forecast to lead with 40% market share, while pure EVs may take about 30%.

Gui also emphasized that future ICE models need to be more fuel-efficient and intelligent to meet global emissions goals.

Source: Yicai Global