Targeting full plant utilization and a 5% market share, Renault’s India reset hinges on fresh products, shared platforms, and a much-needed investment cycle.
25 Apr 2025 | 1183 Views | By Ketan Thakkar
• 5% target: Renault aims to hit 500,000 units production and 5% market share in India.
• Model blitz: Six new models coming—four ICE, two EVs by FY27.
• Powertrain mix: Focus on CNG, ethanol, hybrids; no return to diesel.
• Global backing: India key to Renault’s €3B emerging market ...
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• 5% target: Renault aims to hit 500,000 units production and 5% market share in India.
• Model blitz: Six new models coming—four ICE, two EVs by FY27.
• Powertrain mix: Focus on CNG, ethanol, hybrids; no return to diesel.
• Global backing: India key to Renault’s €3B emerging market push.
Renault India is setting bold targets to reboot its growth story in one of the world’s most competitive automotive markets. The French carmaker aims for a 5% domestic passenger vehicle market share. It plans to scale production to nearly 500,000 units annually, close to the full capacity of its Oragadam plant near Chennai.
“To fill the plant—that’s the immediate goal,” said Venkatram Mamillapalle, Managing Director and CEO of Renault India. “But more broadly, from a brand perspective, Renault’s rightful place in India is 5% market share.”
However, the road ahead is far from straightforward. Renault’s current market share has hit its lowest, and the company faces stiff competition not only from entrenched players like Maruti Suzuki, Hyundai, and Tata Motors but also from a rising wave of global and domestic challengers betting big on SUVs, EVs, and hybrids.
Can Renault realistically claw back market share in such an intensely contested space, especially after years of inconsistent product updates and reduced visibility in the premium SUV segment?
Renault’s journey in India has been anything but linear. After making a mark with the Duster in 2011 and riding the success of the Kwid in 2015, the brand struggled with inconsistent product cadence, limited investment backing, and unfortunate market timing, particularly around the launch of the Kiger during the pandemic.
As Mamillapalle candidly acknowledges, the company’s rollout cycles appeared disjointed: “It looked like we had inconsistent product launch cycles, but that’s not entirely accurate.”
He points to models like Scala, Fluence, and Lodgy, which entered the market but lacked financial support to sustain momentum. Global disruptions—from COVID to the Russia-Ukraine war—only deepened the challenge.
With the “Renaulution” stabilizing Renault’s European base and new alliances such as Renault-Geely in Korea gaining traction, India is firmly on the strategic map. “India hasn’t seen any new investments since 2020—basically, post-Kiger. Now, that’s changing,” he assured.
Sustained Model Action, But Is It Enough?
Renault’s recovery hinges on a $600 million investment program, jointly executed with Nissan, that aims to deliver six new models—two ICE vehicles each from Renault and Nissan, plus two electric SUVs. These models will span the B and C segments, focused on compact and midsize SUVs.
The company plans to refresh the Kwid, Triber, and Kiger, and introduce a midsize SUV likely positioned as the next-gen Duster, priced between Rs 10–25 lakh. “We are moving away from sub-Rs10 lakh products… and looking at the Rs. 10–25 lakh range,” said Mamillapalle, indicating a value upgrade in product strategy.
Renault is also preparing two ground-up EVs using a localized skateboard architecture, with the first, possibly a Kiger EV, expected by FY27. While the company asserts that EV readiness is high, questions remain around its ability to drive scale in a segment where volumes are still nascent and dominated by early movers like Tata Motors.
Mamillapalle insists, “We already have the technology. We can bring it in overnight if needed.” But in a price-sensitive market, technology alone may not be enough.
While the company has ruled out a return to diesel, it reinforces its commitment to CNG and ethanol. As part of its longer-term plans, it actively evaluates range of hybrid technologies.
“India is a multi-fuel, multi-strategy automotive landscape. Not everyone can invest in everything, so deciding which direction to take is crucial,” said Mamillapalle.
“We’re already present in CNG. As for hybrids—we’re exploring that…but it must be meaningful. Mild hybrids don’t make an impact,” Mamillapalle said.
Renault is also studying range extender systems that combine a compact internal combustion engine with an electric drivetrain. “We’re exploring it. I don’t have all the answers yet—I’m still learning,” he added, hinting that localization of such technologies could follow in due course.
Sources say the hybrid powertrain will likely be available in its B and C-segment SUVs. The timelines are yet to be firmed up, but the people in the know add that the company is trying to make its hybrid solution ready within the year of launching the Duster and Bigster SUVs (B and C segment SUVs). Mamillapalle offered no comment but added that multiple technologies are being explored.
India’s Place in the €3 Billion Global Bet
Renault’s India push is part of a broader €3 billion internationalisation plan to expand its footprint in emerging markets such as Brazil, Turkey, and Korea. India is expected to play a central role, particularly in the co-development of B+ SUVs with Brazil.
But again, the questions persist: Can Renault, with a currently limited portfolio and constrained brand momentum in India, convert a significant share of this €3 billion bet into meaningful local success? And if global investments are distributed across multiple regions, will India get the scale and commitment it needs to compete?
Mamillapalle maintains optimism: “It’s a shared bank of €3 billion for all international growth markets… India is expected to receive a sizable share of that investment.”
As the Indian car market gets increasingly fragmented and powertrain-agnostic, Renault’s strategy may be directionally sound. However, whether it can cut through the noise and regain relevance in India’s crowded showroom floors remains an open question.
The company’s global leadership is backing this shift. “Mr. Luca de Meo has visited India twice within a year. That shows how critical India is to our global plans,” Mamillapalle adds. He believes India’s market is on the cusp of exponential expansion. “Today, even though the Indian market stands at 4.3 million units, it's expected to grow to 10 million quickly. Once it starts expanding, the numbers will jump dramatically—it won't be a slow, linear rise.”
With India now central to its international playbook, Renault aims to convert its renewed global focus into a full-scale local resurgence, backed by fresh models, new platforms, and a multi-powertrain strategy that aligns with the country’s diverse mobility needs.
In a market that’s hurtling toward 10 million units, even a 5% share would require over 500,000 units in annual sales, a steep climb for Renault, given its current base. Execution, speed, and sustained consumer pull will be critical.