(Yicai) April 30 -- The global shift toward zero-emission vehicles is accelerating, but internal combustion engines and hybrids will continue to play a major role in the automotive market for at least the next 15 years, according to the chief executive of Horse Powertrain, a joint venture between France’s Renault Group and China’s Geely Holding Group.

Consumer preferences, regional characteristics, and varying speeds of transition make it impossible to adopt a one-size-fits-all approach to mobility, CEO Matias Giannini said to Yicai during an exclusive interview at the ongoing 2025 Shanghai Auto Show.

By 2040, up to half of all vehicles worldwide will still rely on high-efficiency internal combustion engines or hybrid systems, and Horse Powertrain is positioned to meet that demand, Giannini added.

This marks the first time the London-headquartered company is participating in the biennial auto show in the eastern Chinese megacity. At the event, it unveiled a super-hybrid concept that integrates the engine into a compact, lightweight module. The product supports multiple fuel types, reduces research and development costs, and is compatible with electric vehicle platforms. Mass production of vehicles using this technology is expected to begin by 2028.

Founded in May 2024, Horse Powertrain is focused on developing, manufacturing, and marketing ICE and hybrid powertrains globally. Last December, Saudi Aramco, the state-owned oil giant, joined the Renault-Geely partnership with a 10 percent stake.

The Chinese and French automakers consolidated their ICE and hybrid engine assets under Horse's two business units, Geely Aurobay and Renault Horse, creating a global footprint of technology and manufacturing facilities, Giannini explained.

Horse now operates five R&D centers, 17 factories, and employs 19,000 people worldwide. Its products meet around 80 percent of the global demand for ICE and hybrid engines in passenger vehicles and serve major brands such as Volvo and Renault.

In this highly competitive market, cost is critical, Giannini said. Horse benefits from the economies of scale achieved by merging Aurobay and Renault’s assets, allowing it to deliver products at a 20 percent cost advantage over traditional solutions.

Editor: Emmi Laine