Renault is considering producing a low-cost electric car for the local mass market in the Indian market, according to foreign media citing people familiar with the matter. This is also an important move for Renault to re-enter the Indian market.
Renault’s plans underscore the company’s continued drive to electrify its products. Negotiations between Renault and its partner Nissan to invest in the reorganization of an independent electric vehicle division are still ongoing.
Renault’s plans also signal a changing perception among major automakers about the Indian auto market. In 2022, electric vehicles accounted for less than 1% of the total sales of the Indian auto market, but India has set a target of 30% of electric vehicle sales by 2030 and has attracted more car companies through a series of subsidies. It is expected that the adoption of electric vehicles in India will grow rapidly.
Renault is looking into locally manufacturing an electric version of the Kwid hatchback in India, people familiar with the matter said.
▲ Renault Kwid
The study will assess the potential demand for an electric version of the Kwid hatchback, pricing and the ability to use local components in India to build the electric vehicle, one of the people said. Renault will launch the product later in 2024, the people added.
Although Renault sold fewer cars in the Indian market last year than the year before, the company is still profitable. The move is part of Renault’s plan to revive the Indian market, people familiar with the matter said.
Renault declined to comment on product plans but said the company had a “high focus on global electrification” as part of a strategy championed by Chief Executive Luca de Meo. “India is also one of Renault’s key markets.” “.
India will replace Japan as the world’s third-largest market for passenger cars and other light vehicles, according to forecasts from auto industry analyst S&P Global Mobility. India’s auto industry sales are estimated to grow by 23% to 4.4 million units in 2022.
Renault had hoped to reach an agreement with Nissan in December to restructure its electric vehicle business, but talks have progressed slowly due to Nissan’s concerns over a range of issues, including intellectual property protection.
“India will play an important role in future Renault-Nissan projects, but local plans will not be finalized until there is an agreement to restructure the global partnership,” one of the sources said.
In India, EV sales are dominated by local automaker Tata Motors. Companies including Stellantis, Hyundai Motor and SAIC Motor are all rolling out EVs.
Renault already produces and sells an electric car called “Renault e Nuo” in the Chinese market and exports it to the French market under the name Dacia Spring. According to statistics, the Spring is the second best-selling electric car in France in 2022, with a range of 230 kilometers and a starting price of 20,800 euros ($22,180) before subsidies.
To qualify for the Indian subsidy, Renault would have to build the electric version of the Kwid hatchback at a joint factory in southern India and source components locally, the people said. Nissan currently owns a majority stake in the Indian plant.
Renault currently produces the Kwid hatchback, Kiger SUV and seven-seat MPV Triber in India. In 2022, Renault’s sales in the local market in India will fall by 9% to 87,000 vehicles, reducing its market share to just over 2%.
As part of restarting operations in India, Renault also plans to refurbish and upgrade some of its key dealerships in major Indian cities, the people said. The company has said it has 50 local sales outlets in India.
