The French carmaker plans to activate major levers with a dedicated task force to drive faster operations in India, launch new models on the CMF-B platform, and boost international sales, diversifying beyond European markets.
01 Apr 2025 | 1911 Views | By Kiran Murali & Ketan Thakkar
Renault Group is sharpening its international focus with India at the core of its global expansion blueprint. By acquiring 100% ownership of its Chennai-based plant - Renault Nissan Automotive India Pvt Ltd (RNAIPL)- Renault is strengthening its ability to manufacture, export, and develop vehicles for global markets from a cost-competitive ...
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Renault Group is sharpening its international focus with India at the core of its global expansion blueprint. By acquiring 100% ownership of its Chennai-based plant - Renault Nissan Automotive India Pvt Ltd (RNAIPL)- Renault is strengthening its ability to manufacture, export, and develop vehicles for global markets from a cost-competitive base.
During an investor call, Renault Group Chief Financial Officer Duncan Minto described the move as a strategic enabling for future growth. Renault sees India as a full-circle strategic opportunity. It plans to activate major levers with a dedicated task force to drive faster operations, launch new models on the CMF-B platform, and boost international sales, diversifying beyond European markets.
“India is now at the center of how we develop, build, and export vehicles for the world. It gives us the industrial and engineering leverage we need to grow internationally with discipline and speed,” Minto said, adding that India is a key market for the expansion of Renault Group outside of Europe.
Complete Control of RNAIPL - From Alliance JV to Renault-Owned
As part of a broader realignment of the Renault-Nissan Alliance, Renault is increasing its stake in RNAIPL from 49% to 100%, taking operational control of the plant.
Minto noted that this move positions Renault as a fully integrated OEM in India, a crucial step in realizing both the Renault Group's domestic growth targets and its broader international expansion plans.
The Chennai facility, which is currently producing CMF-A and CMF-A+ platform models with Kiger, Triber, and Kwid models for the Renault brand, has an installed capacity of over 400,000 units and is currently underutilized.
“The capacity is over 400,000, but we are currently producing around 150,000 units for both Renault and Nissan vehicles together. So there is plenty of room for us to grow sales into that existing capacity,” he said.
The company said the deal secures Nissan’s future sourcing from India.
“We have signed an agreement with Nissan that foresees us continuing to produce for them. There is nothing that will disrupt the production of vehicles on joint platform for Nissan throughout the lifecycle of those products. We will continue to produce for Nissan, both for their sales in India and for their export opportunities,” Minto said.
Expanding Product Strategy, Entering New Segments
Renault will bring its CMF-B platform to India in 2025, and new product launches are planned for both domestic and export markets.
“On top of the Kiger, Triber, and Kwid — which have also been renewed recently, we will expand the offerings into the B and C segments in the coming months,” he said.
With new platforms, Renault looks to expand its addressable market. “This will expand our market coverage in segments where we haven’t been present for a long time or have never been in the Indian market, with local production,” Minto added.
Renault aims to leverage India’s established supplier ecosystem and cost efficiencies to drive sales within India and expand into strategic export markets. This strategy includes utilizing India's competitive sourcing advantages for parts and components, advanced powertrains (including hybrids) and engineering development.
“It will enable the group to support our ambition for geographical expansion, notably to rebalance the international exposure compared to Europe,” Minto said.
The production localization of products on CMF-A and CMF-A+ is approximately 90%, and the automaker believes that they need to have strong localization in India to remain competitive.
Profitability and Financial Impact
Renault admitted that India is currently not a high-margin geography for the group but expects things to improve as it scales up volumes and enters higher-value segments.
“India is not above the group average in profitability. Our exposure today is to the A, specifically the smaller sub-four-metre car segments... it’s not the most profitable part of the market. With CMF-B being introduced, we should expect to see profitability grow,” he said.
The company will invest heavily in the second half of 2025, ahead of model launches in 2026, and this is projected to negatively affect their free cash flow by approximately 200 million euros in the year 2025.
“The impact we discussed today, which is a €200 million negative figure from CAPEX, is for H2 2025. This is the peak of the investment cycle for India, as cars are being launched in 2026. Expect the CAPEX level to decrease significantly in 2026,” he added.
Operational Improvements
To support the transition and accelerate performance, Renault is deploying a dedicated task force to India.
“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 said.
Despite the manufacturing ownership shift, Renault emphasized that the Renault-Nissan Alliance remains operational in India.
The Alliance remains active and continues to collaborate on initiatives that generate value for both parties. The announcement this morning for Nissan doesn’t change anything on their projects in India.”
With new platforms, a sharper product portfolio, cost discipline, and a more decisive export play, Renault is looking to position India not just as a domestic growth market but as a base for global competitiveness. The company believes that the full ownership of RNAIPL gives them more flexibility to grow and leverage India more effectively.