Renault Aims Five Lakh Yearly India Sales By 2030 In Revival Plan

Renault SA is targeting annual sales of half-a-million vehicles in India by 2030 — or more than 12 times the current level — as part of a renewed push to revive its long-struggling business in the world’s third-largest car market.

“We were shy in the past,” Renault India Chief Executive Officer Venkatram Mamillapalle said in an interview at Chennai. “Now, we are going aggressive.”

Refreshed versions of its compact sports utility vehicle, Kiger, and the seven-seater Triber will be rolled out from July. Four new SUVs and two electric cars will follow over the next few years, he said.

For the French carmaker that sold about 38,000 units in the year ended March 31, the ambitious target shows the hunger for a larger market share and its maiden profit in India where it has had a manufacturing presence for 15 years. Renault’s India market share has shrunk from 2.8% in 2020 to less than 1%, with a stagnant lineup of just three mass-market models.

“We made mistakes in the past,” Mamillapalle said. “But we will not repeat them again,” he added, referring to the carmaker’s inability to consistently launch new models in India.

Renault, which announced acquisition of its global alliance partner Nissan’s 51% stake in their India joint venture in March, is taking full control of the passenger vehicle factory in Chennai. It also announced the opening of a new design center in the city on Tuesday - its largest such facility outside France.

Renault plans to start selling hybrid models and an EV by 2027, according to Mamillapalle. The cars start on electric power and offer several kilometers of fuel-free driving in urban conditions. The firm is also seeking tax relief to make these greener technologies more viable for price-conscious Indian buyers.

Hybrids in India currently attract a 28% basic tax rate, going as high as 43% for SUVs longer than 4 meters — compared to just 5% for battery EVs. This makes strong hybrids uncompetitive despite lower emissions, Mamillapalle said.

The new Chennai design center will focus on developing models tailored to the Indian market as well as contribute to the company’s global projects, according to Laurens van den Acker, Renault Group’s chief design officer. 

“India is highly unique and locally driven,” Acker said.

The automaker’s India push also comes as the country’s free-trade agreement, or FTA, with the European Union gains momentum after being in the pipeline for years.

Renault sees this as an opportunity to export mass-market cars and auto parts to the EU from India, according to Mamillapalle. 

“We are very competitive on components,” he said. “If the FTA happens, India could become a manufacturing zone for Europe.”