Indian employees work on the assembly lines for components for Datsun Go and Renault Kwid vehicles on the Renault Nissan Automotive India plant in Chennai on October 26, 2016, in the course of the visit of French Minister of State for Industry Christophe Sirugue.
Arun Sankar | AFP | Getty’s paintings
Renault is considering constructing a mass-market electric vehicle in India, two individuals with knowledge of the continuing review told Reuters, as a part of its re-entry right into a market where small-base EV adoption is expected to grow rapidly.
Renault study highlights how French automaker pushes ahead with electrification plans at the same time as it prolongs unresolved negotiations with its partner Nissan engine about investing in an EV unit that it plans to spin off from other operations.
It also points to changing perceptions of the automotive market in India, which recorded the fastest growth of any major market in 2022. Electric vehicles were expected to account for lower than 1% of automotive sales last 12 months, but the federal government has set a goal of 30% by 2030, and has recently been successful in sourcing suppliers to international automakers using a variety of subsidies.
Renault is considering launching an Indian-made electric version of its Kwid hatchback, people have told Reuters.
The review will assess potential demand, pricing and the feasibility of constructing an EV from local components, considered one of the people said, adding that any launch would happen in late 2024.
The move is a part of Renault’s wider plan to reignite sales in a rustic where the automaker stays profitable despite selling fewer cars in 2022 than a 12 months earlier, the person said.
Renault India declined to comment on product plans but said the corporate was “strongly focused on global electrification” as a part of the strategy outlined by CEO Luc de Meo and that “India is considered one of the important thing markets” for the group.
In keeping with S&P Global Mobility’s forecast, India will turn out to be the third largest marketplace for cars and other light vehicles, displacing Japan. Industry-wide sales are up an estimated 23% to 4.4 million vehicles in 2022.
This contrasts with the outlook for the US, where the market is expected to stay below 2019 levels next 12 months, and China, where demand is weakening.
Renault had hoped to succeed in an agreement with Nissan in December on the terms of the EV unit spin-off, but discussions have been slowed by the Japanese carmaker’s concerns over a variety of issues, including the protection of its mental property.
“India will play a crucial role in future Renault-Nissan projects, but local plans is not going to be finalized until a worldwide agreement is reached to restructure the alliance,” one source said.
In India, a domestic automotive manufacturer Dad’s engineswhich dominates the sales of electric cars, in addition to foreign players, e.g stellantsHyundai Motor i SAIC MG Motor is preparing the premieres of electric vehicles.
Renault already produces the Kwid EV version in China, which is marketed there because the City K-ZE and exported to France because the Dacia Spring. The Spring, the second most sold electric automotive in France in 2022, has a variety of 230 kilometers and an asking price of €20,800 ($21,869) before government incentives.
To qualify for India’s incentives, Renault would must construct the automotive at its alliance plant in southern India and source components locally, the primary person said. The factory in India is majority owned by Nissan.
Nissan declined to comment.
Currently, Renault manufactures the Kwid hatchback, Kiger SUV and Triber seven-seater in India. Its sales fell 9% to around 87,000 units in 2022, and its market share fell to only over 2%.
As a part of its relaunch in India, Renault also plans to take a position in refurbishing and upgrading a few of its major showrooms in major cities, the person said. The corporate said it had 500 outlets in India.