Horse, Renault’s department for the further development of internal combustion engines, will sell 2.0-liter turbodiesel engines to Habas, one of Turkey’s largest companies, for use in light-commercial vehicles.

The company has signed its first major contract with an outside company with an agreement to provide turbodiesel engines to the Turkish conglomerate Habas. The Renault turbodiesel engine is certified for Euro 6d emissions standards. Financial terms of the deal were not revealed.

Horse and Ampere

Horse was established as a separate company last year to concentrate Renault Group’s internal combustion drivetrain activities, including factories and development. It will build more than three million units annually for Renault, Dacia, Nissan, and Mitsubishi vehicles, including engines and drivetrains. It started operations in July 2023.

Automakers are seeking ways to manage the expected decline in gasoline and diesel engine sales while financing the costly transition to electrification. That’s one reason why Renault has set up two companies, Ampere and Horse. The first will focus on developing and building full-electric cars.

Other partners

Horse is Renault’s side of a 50/50 joint venture with the Chinese Zhejiang Geely Holding Company, which has its own ICE powertrain division called Aurobay. It builds combustion engines for brands including Volvo and Lynk & Co. After the current generation of powertrains runs its course the two automotive groups are expected to collaborate on new components.

The combined company is expected to produce more than five million engines and transmissions annually and have an annual revenue of €15 billion. Renault and Geely signed the joint venture agreement last August, although a final deal has not yet been closed yet.

Aramco, the Saudi national energy company, also signed a letter of intent with Renault and Geely in March 2023 to become a shareholder in the joint venture. Still, it has not yet officially completed the investment.

Habas

The Habas company is a Turkish conglomerate established in 1956. Its interests include the production of industrial and medical gases, steel, power generation, heavy machinery manufacturing, motorcycle production, shipbuilding, and banking.

The Renault engines will be used in Habas’ first light-commercial vehicles, which will be built in Manisa, eastern Turkey. Horse itself has a joint-venture powertrain site in Bursa, northern Turkey, that builds Renault and Nissan engines, as well as transmissions and other components.