REVOLUTIONIZING MOTION FOR ALL

The Paris Agreement and European Green Deal have set an ambitious path: by 2050, the world must reach net zero greenhouse gas emissions.[1]

To get there, mobility cannot rely on a single technology, raw materials from a single source or insufficient charging infrastructures. We need a broad, resilient ecosystem of solutions – which includes efficient combustion engines, hybrids, range extenders, eFuels and biofuels.

Every one of these can play an essential role in our journey towards a lower-carbon future.

And while the transition accelerates, internal combustion is far from over.

• Around 1 billion ICE-based vehicles – new and existing – will still be on the road in 2040. [2]
• ICE and hybrid (xHEV) technologies will continue to represent more than half of the global market by 2035. [2]
• ICE and hybrid systems are still evolving – with efficiency gains, emissions breakthroughs and integration with renewable fuels.
• Market demand for efficient combustion and hybrid systems is growing across the Middle East, Africa, South America and South Asia, and remains strong in Europe, China, Japan, Korea and North America. [2]

Many of these vehicles don’t stay where they were first sold – they are resold and continue operating in regions such as South America, India and Africa.

By making internal combustion engines and hybrid systems more efficient, we reduce emissions not just where the vehicles are built, but across the full lifecycle, including every market they continue to serve.

Until recently, electrification has been treated as the main path in automotive’s decarbonization journey. Hybrids have largely been viewed as a transitional technology - a temporary bridge on the road to full electrification. However, it is time to rethink that approach.

If we were able to achieve 80% electric vehicle production globally by 2050, this would represent a historic breakthrough. For many, that goal seems unrealistic, but by rethinking the role of hybrids it becomes achievable.

Rather than treating 80% electrification as a technology target, the focus should be on global emissions reduction. By converting 50% of the global vehicle fleet so that half is fully electric and half uses advanced hybrid technology, we can deliver emissions savings equivalent to a scenario in which 80% of vehicles are fully electric.

This is an achievable goal, and it is why we are focused on developing the most advanced hybrid technology on the market and ensuring it can be seamlessly integrated into existing battery electric vehicle (BEV) platforms.

Fully electric vehicles are not suitable for every market, nor is every EV powered by clean electricity. By embracing hybrids, we can reach a truly global market and reduce emissions more effectively and at a greater scale than ever before.

The geography of decarbonization is as diverse as the planet itself.

• South America: Brazil’s success with sugar-cane ethanol has created a mature renewable-fuel ecosystem. Flex-fuel vehicles now represent over 80% of new sales. [5]
• India: Combines hybridization, ethanol blending and gradual electrification to make clean mobility accessible and affordable for millions.
• Africa: With grid constraints and cost sensitivity, efficient ICE and hybrid systems powered by local fuels deliver low-carbon mobility at scale.
• China: Rapidly expanding hybrid and range-extender adoption bridges infrastructure gaps and accelerates the shift to electric mobility.
• Europe and North America: Urban centers electrify rapidly, while rural and long-distance users depend on hybrid and efficient ICE solutions.
  
  This is why Horse Powertrain designs powertrains for every condition – scalable, modular systems that deliver performance, efficiency and durability across all energy mixes.

Alternative fuels are essential to achieving net zero in global mobility, forming a key part of the global auto industries low emission future.

Horse Powertrain is investing in technology and powertrains across the full spectrum of fuels:

• Biofuels such as ethanol, biodiesel and biomethane – reducing lifecycle CO₂ while reusing existing infrastructure.
• Synthetic eFuels derived from captured CO₂ and renewable hydrogen – enabling carbon-neutral combustion with minimal adaptation.
• Methanol and other circular-carbon pathways that turn waste into clean energy.
• Hydrogen, unlocking near-zero emissions for heavy-duty and long-range applications.

Through partnerships we are advancing technologies that make combustion carbon-neutral. With supportive policy, eFuels can decarbonize long-haul and legacy fleets long before full electrification becomes universal.

Governments worldwide are revisiting the idea of complete ICE bans. Real-world results show that reaching net zero requires multiple solutions, not ideological silos.

Horse Powertrain supports technology-neutral regulation – policies that are based on achieving real-world outcomes, not on banning or regulating technology. A vehicle’s environmental impact depends as much on its energy source and manufacturing process as on its tailpipe emissions.

Our teams actively engage with policymakers to promote balanced frameworks that reward genuine carbon reduction – whether through electrification, including hybrids and range extenders, or through eFuels and hydrogen.

Progress should be measured by outcomes, not one prescriptive technological solution.

True decarbonization means accounting for every stage of a vehicle’s life – from material extraction and component production to operation, recycling and reuse.

A hybrid battery uses around 20 times less critical material than a large BEV pack [6]. And in regions where electricity is still generated mainly from coal or gas, charging a BEV can produce more total emissions than running a modern hybrid on renewable fuel.

The same applies to the energy grid. According to Statista data [7], the global grid emits nearly 15 gigatons of CO₂ each year – almost four times more than all passenger transport combined. With fossil fuels still powering 60% of global electricity generation, lifecycle assessments must consider both the energy source and its regional context.

That’s why a technology-neutral, data-driven approach is essential. Reducing total CO₂ – not just tailpipe emissions – means matching the right powertrain to the right conditions.

Horse Powertrain’s systems are designed around this full lifecycle perspective. Our ICE platforms already achieve 43.5% brake thermal efficiency, and we are targeting 50%. Shared architectures cut waste, while modular components extend life and recyclability.

By focusing on total lifecycle efficiency, we help OEMs achieve credible, science-based sustainability targets – ensuring that every vehicle contributes to genuinely low-carbon mobility.

At Horse Powertrain, our global R&D and manufacturing network – 18 plants and five technical centers – is focused on delivering practical innovation, including:

• Ultra-efficient ICEs with pre-chamber ignition and prototypes achieving up to 90% below EU7 tailpipe limits.
• Hybrid systems, such as the HORSE 4DHT120 for up to 80% zero-emission city driving.
• Range-extender systems, such as the HORSE X-Range series, which allows BEV platforms to serve as the foundation for HEV, PHEV, and REEV line-ups.
• Powerful hybrid engines, such as the HORSE W30 V6 engine, delivering higher power density to expand our HEV offering.

These are not concepts – they are real, deployable systems enabling faster decarbonization.

Innovation in powertrain design is accelerating the transition. At Horse Powertrain, we’re proving that technology is no longer the bottleneck. The real bottleneck is cost and complexity.

Automakers shouldn’t have to tackle this transition alone. Needing separate platforms, supply chains and regional strategies is inefficient, costly and slow.

We’re designing powertrain solutions that simplify complexity for automakers – systems that allow multiple technologies to share a single platform.

A clear example of this is evident in our X-Range series, a complete toolkit for adding hybrid capability to dedicated BEV platforms. These three solutions – the C15, C15 Direct Drive, and F15 Direct Drive – provide OEMs with a selection of solutions to fit their specific needs, while requiring minimal modifications to design.

By delivering complete powertrain solutions, we allow our customers to reduce ICE-related investment by up to 50% and cut development timelines by months or even years. 

Our F15 Direct Drive is a great example of this technology in action. It integrates an engine, transmission, electric motor and power electronics into a single compact module.

• 25% narrower than legacy hybrid systems
• 150 mm shorter front end, giving greater design freedom
• Up to 20% cheaper for AWD configurations

Mounted directly on the subframe, this allows automakers to amortise investment across both BEV and hybrid propulsion types, and build them on the same production line – with no structural redesigns, sensor recalibration or new tooling.

For OEMs that want a comparable solution to replace a rear electric drive unit, our C15 Direct Drive allows them to do just that – allowing a BEV to serve as a hybrid platform.

On the other hand, for OEMs that are looking for a flexible range extender solution, our suitcase-sized C15 solution is designed to be packaged and installed virtually anywhere within a vehicle. 

The result is instant flexibility, faster time to market, and the ability to adjust BEV/hybrid mix without additional capital expenditure.

So, OEMs can focus on what they do best – creating vehicles people love, enhancing user experiences, and accelerating their own journey toward battery electric vehicles.

OEMs can design and manufacture their own powertrains. The question is: why should they, when it can be done better and more cheaply through specialization?

In today’s automotive market, small three- and four‑cylinder engines are fundamentally commoditized. No OEM wins because it has reinvented the two‑litre engine. Yet many continue to duplicate R&D effort, tooling, and production capacity, adding cost without adding differentiation.

We take a different approach. By concentrating exclusively on internal combustion and hybrid powertrains, we leverage economies of scale across multiple OEMs to deliver lower unit costs and consistently higher quality. Scale allows us to invest in the very best technology, manufacturing processes, and supplier relationships, benefits that are difficult and inefficient for individual OEMs to replicate on their own.

This model frees OEMs to focus their capital, talent, and innovation where it truly differentiates them: electric platforms, software, user experience, and brand. 

We effectively take care of ICE, delivering proven, high‑quality powertrains at scale, while OEMs accelerate their electric strategies without carrying unnecessary cost or complexity.