A new hybrid powertrain concept designed to operate on 100% renewable gasoline is promising up to 40% lower fuel consumption compared with conventional internal combustion vehicles, as global suppliers continue to refine hybrid systems alongside electrification. The concept was unveiled in February 2026 by Horse Powertrain, a joint venture backed by Geely, Renault Group, and Aramco, with a demonstrator vehicle scheduled for early 2026.
Horse Powertrain was formed in 2024 as a standalone supplier combining the combustion and hybrid powertrain operations of Geely and Renault. The company is owned 45% by Geely, 45%by Renault Group, and 10% by Aramco, and supplies engines and hybrid systems to brands including Renault, Geely Auto, Volvo Cars, Nissan, Mitsubishi Motors, and Proton. The latest announcement places the Geely linked supplier among major developers pursuing efficiency gains in hybrid drivetrains rather than relying solely on battery electric platforms.
The new system is based on the Horse H12 hybrid engine concept, developed jointly with Repsol. According to the companies, the engine achieves a peak brake thermal efficiency of 44.2%, which sits near the upper limit of modern hybrid combustion systems. Under WLTP test conditions, fuel consumption is reported at less than 3.3 liters per 100 kilometers, roughly 40% lower than the 2023 European average for new passenger cars.
Efficiency gains come from a combination of a 17:1 compression ratio, redesigned exhaust gas recirculation, optimized turbocharging, and transmission calibration tailored for hybrid operation. The powertrain is engineered to run on Repsol’s fully renewable gasoline produced from renewable feedstocks rather than fossil sources. Based on company estimates, a mid size vehicle equipped with the system could reduce carbon dioxide emissions by about 1.77 tones per year, assuming annual driving of 12,500 kilometers.
Horse Powertrain confirmed that two prototype engines have already been built and tested, with the first full demonstrator vehicle integrating the hybrid system expected to debut in early 2026. The company operates 17 manufacturing plants and five research and development centers worldwide, supplying combustion and hybrid technologies across multiple regions.
Important thing to note here is that regional variations in infrastructure, energy access, and regulatory frameworks are influencing these strategies. These lead companies to customize their solutions for different markets. Hence, pushing forward with hybrid systems alongside electrification together can be one way manufacturers aim to offer consumers more flexible, lower-emission choices while smoothly transitioning to a fully electric future.
