Exclusive: Fresh Off Chennai Takeover, Renault’s Luca de Meo Signals Bigger Role for India

Just days after Renault formally took complete control of its Chennai manufacturing facility from Nissan, Renault Group CEO Luca de Meo made a high-profile visit to India—his second in less than 15 months—underscoring the country's rising strategic importance in the company’s global operations. 

Addressing employees at the Renault Nissan Technology & Business Centre India (RNTBCI), de Meo reaffirmed Renault’s long-term commitment to India as both a domestic growth market and a key pillar of its international expansion. His visit comes at a pivotal moment, as Renault sharpens its global strategy with India at the core of its manufacturing, R&D, and export ambitions.

The recent move to acquire 100% ownership of the Renault Nissan Automotive India Pvt Ltd (RNAIPL) plant in Chennai marks a significant shift for the company, transforming India from a joint venture outpost into a fully integrated and autonomous base for global operations. During a recent investor call, Duncan Minto, CFO of the Renault Group said India was now at the center of how the company developed, built, and exported vehicles. 

To accelerate this transition, a dedicated task force is being deployed to India to improve operational agility, cost competitiveness, and execution speed, he had said. “Measures to further improve performance will be assessed with the contribution of a dedicated task force, which will be ready from day one to support Indian operations—both to turn around and accelerate,” Minto added.

He described the acquisition as a strategic enabler that will allow Renault to activate key levers, including faster decision-making, quicker model launches, and expanded exports, as part of its efforts to rebalance its global exposure beyond Europe.The Chennai facility, with an installed capacity of over 400,000 units and utilisation of 150,000 units, offers significant headroom for growth. “There is plenty of room for us to grow sales into that existing capacity,” Minto had said during the call.  

He confirmed that Renault will continue to manufacture vehicles for Nissan on shared platforms through the lifecycle of existing models, ensuring alliance continuity while unlocking more operational independence for Renault.

India is also poised to play a pivotal role in Renault’s product transformation and electrification roadmap with the introduction of the CMF-B modular platform in 2025. This platform will support a new wave of B and C segment models aimed at both domestic and export markets—segments where Renault currently lacks scale. “This will expand our market coverage in areas where we haven’t been present for a long time, or never before, with local production,” Minto had said, adding that the shift to larger, higher-value vehicles will help improve margins over time.

While Renault acknowledges that India is not currently a high-margin geography, it anticipates profitability growth as volumes increase and the product mix evolves. “Our exposure today is to the A, specifically the smaller sub-four-meter car segments... It’s not the most profitable part of the market. With CMF-B being introduced, we should expect to see profitability grow,” said Minto. He also noted that 2025 will be a peak investment year as it prepares for new product launches in 2026, and estimated that the free cash flow impact for the year is expected to be around €200 million.

With platforms like CMF-A, CMF-A+, and soon CMF-B, Renault aims to localise production to over 90% and leverage India for global sourcing of parts, components, and advanced powertrains. “It will enable the group to support our ambition for geographical expansion, notably to rebalance the international exposure compared to Europe,” Minto had explained. Renault’s India strategy aligns with its 'New International Gameplan 2027,' announced in October 2023, which positions India among four strategic industrial hubs outside Europe, alongside Latin America, Turkey, and Morocco. 

The plan involves launching eight new models globally—five of which will be in the high-value C and D segments—and expects one in every three Renault vehicles sold outside of Europe to be hybrid or electric by 2027. India’s manufacturing and supply ecosystem are key to Renault’s global expansion strategy.

Luca de Meo’s town hall message echoed the confidence in India’s potential. He called on employees to bring speed, agility, and innovation to the table as India prepares to take on a more central role in the group’s global strategy. An email sent to the company did not elicit any response.

With manufacturing control, new products in the pipeline, and deeper investment in R&D, Renault is not just doubling down on India—it is betting on it to drive the next phase of its global growth story. When it comes to AI capabilities and digitalization, the company expects India to play a much bigger role going forward.