Renault Aims to Introduce Electric Car in India Next Year

19 Aug, 2023

Renault Aims to Introduce Electric Car in India Next Year

French automaker Renault, in partnership with Nissan, has announced a substantial investment of INR 5,300 crore for their operations in India. The two companies are exploring the possibility of introducing a new electric vehicle to the Indian market, built on the Spring Electric platform, which is currently available in Europe.

Venkatram Mamillapalle, CEO and MD of Renault India, revealed plans for the launch of several new vehicle models in 2024. The upcoming electric car is expected to be a localized version of the Spring model. Mamillapalle confirmed that this electric vehicle, designed with similarities to the Renault Kwid hatchback, will be manufactured in their Indian facility. However, specific technical details were not disclosed.

Renault India is actively developing a range of new models, including conventional internal combustion engine (ICE) vehicles, and previously hinted at introducing an A-segment electric car.

The Renault-Nissan joint venture plant, situated near Chennai, has a production capacity of 480,000 units annually. Presently, only 48% of this capacity is utilized by both companies. In the previous fiscal year, Renault produced approximately 84,000 vehicles, with 28,000 of them being exported. According to data from the Society of Indian Automobile Manufacturers (SIAM), Renault's domestic sales reached 78,926 units. However, Mamillapalle acknowledged a projected decline in numbers for the current year.

Renault India anticipates sales of approximately 60,000 to 65,000 units in the domestic market, alongside an export target of around 20,000 units. The South African export market has experienced some deceleration.

Renault's current portfolio in India comprises three models: the Kwid hatchback, the Triber seven-seater multi-utility vehicle, and the Kiger five-seater SUV. Due to limited choices for consumers, the company's retail sales have been decreasing.

To counteract this decline, Renault launched a "showroom on wheels" initiative, aiming to extend the reach of their showrooms through mobile units staffed with sales personnel. This mobile showroom concept is set to be deployed across 625 locations in India.

Despite challenges, Renault remains committed to maintaining its brand identity and avoiding entry into the taxi segment by offering a CNG variant of the Triber.

The company is open to diversifying its powertrain options, including plug-in hybrids and ethanol blends. Globally, it already has a flex fuel option (E85, 85% ethanol) and could introduce it in India pending government interest. Mamillapalle also stated that by October 1, all Renault models will be equipped with six airbags as a safety standard.