Exclusive: Renault Sees Potential for India to Be Its Biggest Market by 2030

The Indian passenger vehicle market qualifies as among the toughest worldwide to succeed in, but it can also be very rewarding. It’s the rewards part that makes Renault not only continue its bet on India, but also up it, even though it’s seen some market share erosion here, from close to 3 percent in 2019-20 to less than 1 percent now. With the launch of the refreshed Triber, Renault India embarks on a renewed journey.

“Our road to success has started. We should see rapid success coming into our fold in India,” an upbeat Venkatram Mamillapalle, MD & CEO, Renault India, tells ACKO Drive.     

The investment plan of ₹5,300 crore, announced in January 2023, is also a reflection of Renault’s bullishness on India and its ambitions here. The ambition to scale up its business rapidly is also driven by the company’s estimate that India could well become its largest market by the end of this decade. With cumulative sales of a little over 41,000 units, India was the 13th largest market for Renault last year.

“The Indian market is growing, the European market is becoming smaller, that’s the trend. In the mid-term we can say that can be our target. Maybe before 2030,” says Renault India’s VP – Sales and Marketing Francisco Hidalco Marques, who has had multiple stints at various Renault entities in Europe. Choosing Chennai to launch its first ‘R Store’ (a new showroom design concept)  globally may also be seen as an indication of Renault’s bullishness on India.   

Renault currently sells around 4,00,000 cars in Europe, which translates to 20 percent of the overall market of 2 million units. Renault’s production facility in Oragadam has an annual production capacity of 4,80,000 units. The French major bought out its Alliance partner Nissan’s 51 percent stake in the plant earlier this year. The acquisition process will be completed “within weeks”, according to the company. Under the new arrangement, Renault will contract manufacture cars for Nissan.

Renault’s plan to revive its global businesses, which were “in oxygen” as the parent company focused on putting its home market business on track, is yielding results, according to Mamillapalle. “The revival plan started with Korea. They are on board now. A job very well done. Then you have LatAm, which is picking up as well. So, now it’s the turn for India,” he says.

With 350 retail showrooms across the country, and a team of 6,000 engineers dedicated to Renault at the Renault Nissan Technology and Business Centre India, the French major is hopeful of accelerating its journey in India. 

On this journey, Renault India is also prepared to have a “multi-energy” play in terms of vehicle technology as the parent company has a bouquet of technologies it can pick from. “Everything’s at an arm’s distance,” says Mamillapalle.