With complete control of its Chennai plant, a multi-fuel playbook, and bold export ambitions, Renault aims to reshape its legacy in India. Still, its history of inconsistency makes execution the ultimate test.
24 Jun 2025 | 503 Views | By Ketan Thakkar
Renault’s two-decade odyssey in India has been a saga of bold disruptions, costly missteps, and prolonged periods of drift. From the trailblazing Duster to the frugal Kwid, the French automaker has tasted both triumph and stagnation in one of the world’s most unforgiving automotive markets. Now, armed with complete control ...
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Renault’s two-decade odyssey in India has been a saga of bold disruptions, costly missteps, and prolonged periods of drift. From the trailblazing Duster to the frugal Kwid, the French automaker has tasted both triumph and stagnation in one of the world’s most unforgiving automotive markets. Now, armed with complete control of the Renault Nissan Automotive India Pvt Ltd (RNAIPL) plant, a €600 million investment, and a renewed global vision, Renault is scripting its most ambitious chapter yet.
India is no longer just a market—it’s the cornerstone of Renault’s international revival, a potential global manufacturing and innovation hub. But with fierce competition and a checkered past, can Renault deliver the consistency needed to claim a lasting foothold?
Luca de Meo’s Strategic Pivot
In early 2025, Renault former CEO Luca de Meo made his second visit to India within 14 months, a clear signal of the market’s elevated status in the company’s global strategy. His first visit, in 2024, was a diagnostic mission to assess Renault’s struggling Indian operations; this time, he sealed a transformative deal, acquiring Nissan’s stake in the RNAIPL plant near Chennai, giving Renault full operational control. The move is more than a corporate reshuffle—it’s a strategic reinvention. Renault has exited Russia and China and has no presence in the US or Japan. In 2024, the company sold just 840,000 units internationally, with 65% of those sales coming from Europe.
With limited global options, India is a linchpin for growth. Moreover, the country’s mature technical center, active design facilities, and shared production under the CMF-A platform make it a unique value hub for the Renault-Nissan Alliance. While Renault doesn’t sell cars in China, it has a tech center there to learn from the EV ecosystem—a model that could be replicated in India for software-defined vehicle development.
“We’ve been here 17 years, and we still believe in this market,” de Meo had told the media in 2024, citing past successes like the Duster and Kwid as proof of potential, but admitting the inconsistency that followed. The €600 million investment, part of a €3 billion global plan, is Renault’s boldest commitment yet to turning aspiration into traction. “This clarity gives us executive autonomy,” said a source close to the company, signaling a break from joint governance that once slowed progress.
While Nissan exits as an equity partner, it remains a critical ally, continuing contract manufacturing at the Oragadam plant to ensure high-capacity utilization. De Meo’s candor about the challenges of operating in India set the tone during his visit in 2024. “Many carmakers have bitten the dust here,” he said, acknowledging Renault’s “low point” in 2024.
Yet, he remains resolute, fielding tough questions from journalists with a clear message: “We’re not shying away. We’re betting big on India.” Speaking to a packed hall at the Renault Nissan Technology & Business Centre India (RNTBCI), de Meo was unequivocal: “India isn’t just a market—it’s our global springboard.” Post the acquisition, de Meo’s “one kitchen, one chef” philosophy to employees underscored the shift to streamlined decision-making, freeing Renault from the bureaucratic gridlock of the Renault-Nissan alliance.
As Chinese OEMs tighten their grip on Europe’s EV market, a focused push in India can enhance Renault’s global relevance, says V.G. Ramakrishnan, Managing Partner at Avanteum Advisors, who views this acquisition as a pivotal shift from joint dependence to strategic independence. Alliance-level complexities, he notes, have often hindered Renault’s progress, and this newfound autonomy could enable decisive action in a market where agility is paramount.
“The future of any automaker in India depends on its ability to take independent, marketspecific decisions. Renault now has that flexibility,” he says. Renault’s revival plan spans all three aspects of operations, from portfolio revamp to network expansion and manufacturing and design operations.
I - Product Strategy: Scaling Across Segments
Renault’s early success in India was built on affordable, value-for-money cars, such as the Kwid; however, the market has since evolved. “We focused on the cheapest possible car in the past, but India demands more than basic mobility now,” de Meo said. The company is pivoting to aspirational, value-driven products, targeting the growing middle class with premium features and modern designs.
This shift aims to shed Renault’s budget-brand image, cemented by models like the Kwid, and position it in the higher-margin B- and C-segment SUV markets, where rivals like Hyundai Creta, Mahindra XUV700, and Tata Harrier dominate. It has developed a comprehensive, multi-platform product strategy that spans the budget, value, and premium segments—each tailored to evolving customer aspirations and regulatory needs.
CMF-A: Staying in the Game
Despite thinning margins and tightening regulations, Renault is not exiting the entry-level segment. The Kwid, built on the CMF-A platform, remains central to its volume strategy. While impending safety and emissions norms limit its lifecycle, Renault continues to extract value from the platform as long as policy permits, especially as competitors vacate the A-segment.
CMF-A+: Triber and Kiger to Get Significant Makeovers
The CMF-A+ platform, which underpins the Triber and Kiger, is set for a bold refresh. Both models will receive significant facelifts in the next two quarters—beyond cosmetic tweaks, the updates are expected to bring more premium styling, enhanced safety features, and upgraded interiors to align with rising consumer expectations. Renault aims to reposition these models higher up the value chain and re-engage urban and semi-urban buyers seeking aspirational yet affordable SUVs.
CMF-B: The Big Bet
Set to debut in 2025, the CMF-B platform is Renault’s answer to competitors dominating India’s SUV market. This architecture supports ICE, hybrid, and EV variants, offering Renault future-proof flexibility. The platform will deliver two Renault and two Nissan models, along with one EV.
The second-generation Duster, confirmed for a 2026 launch, will be the flagship product of this strategy, targeting buyers in the Rs. 12–18 lakh segment. It aims to rekindle the original Duster’s appeal with a rugged yet modern package. The Bigster, a stretched sevenseater sibling, will follow, helping Renault play in the growing three-row SUV category where competition is intensifying. Brand strategy expert Avik Chattopadhyay views the Duster revival as a potential turning point— not just in product terms but in reimagining Renault’s presence in India. “It’s not just about launching a product—it’s about how Renault shows up in India,” he cautions, urging greater cultural relevance and a more clearly defined brand identity.
Critically, beyond standard petrol and turbocharged petrol options, both the Duster and Bigster will also get strong hybrid variants, expected to arrive within six months of their initial launches. This move positions Renault squarely against rivals such as Maruti, Toyota, and Honda in the hybrid market, addressing the growing demand for fuel-efficient, urban-friendly SUVs.
“We must nail the value proposition,” says Venkatram Mamillapalle, MD & CEO, Renault India. “Precise pricing and feature-rich offerings will be crucial to carving out space in this competitive segment.” A new small SUV-style EV, distinct from the Kiger and Triber is also under development on a modified CMF-A or CMF-B platform, aiming to meet 2027 emission and safety regulations.
CMF-C: The Long-View Premium Option
In a long-term scenario, Renault is also exploring the introduction of the Brazil-developed CMF-C platform in India. Slated for potential deployment post-2029, CMF-C could enable Renault’s expansion into the C+ and D-segment SUV markets. However, high costs and localization challenges could limit its feasibility for the Indian market unless significant scale or policy support materializes. This multi-platform approach reflects Renault’s ambition to cater to diverse customer segments while building a robust product portfolio.
Yet, while the platform strategy signals breadth and ambition, Renault’s bigger challenge may lie in crafting a more emotionally resonant identity. To succeed in India’s hyper-competitive market, the brand must combine technical reinvention with a compelling, cohesive narrative that connects with evolving consumer expectations. Chattopadhyay likens Renault’s India journey to a French art film—full of substance but often complex for the wider audience to interpret.
The Duster created India’s SUV vocabulary, and the Kwid made mini-SUVs aspirational, yet Renault struggled to maintain momentum. “Renault began to lose its leadership edge by following market trends rather than creating them,” he reflects. The Triber and Kiger, he argues, are technically competent but lack a compelling narrative. “They don’t stand out the way the Duster and Kwid did. Both feel like they’re part of the crowd, not ahead of it,” he says, pointing to the absence of a distinctive design or product philosophy.
Renault’s powertrain strategy strikes a balance between immediate market realities and long-term trends. “We’re not in an EV emergency,” Mamillapalle says, noting EVs’ modest ~1.5% market share in India. He predicts that hybrids will surpass EVs by 2032, achieving a 15–18% market share, while EVs will remain below 10%. "The EV is the most unpredictable market. Anyone claiming leadership today is lying—it’s just 2% of total industry volume," he adds.
While a new SUV EV is in development, Renault prioritizes compressed natural gas (CNG) and strong hybrids to align with India’s diverse fuel preferences. Hybrids will debut within a year of CMF-B’s internal combustion engine (ICE) launch, leveraging the platform’s flexibility to support multiple powertrains. CNG, handled through non-factory partnerships like Minda Westport, will be evaluated based on regulatory and market shifts.
“India is a multi-fuel market,” says Global CFO Duncan Minto, emphasizing a strategy that hedges against India’s volatile policy landscape but risks lagging in EVs, where Tata Motors and MG Motor lead. “We’re covering all bases to stay competitive,” Mamillapalle adds, noting that Renault’s cautious approach avoids the hype-driven EV race while addressing practical consumer needs.
India’s unique market dynamics inform this multi-fuel strategy. Government incentives for hybrids and CNG, coupled with infrastructure challenges for EVs, make Renault’s focus pragmatic. However, the company must ensure its EV offerings don’t fall behind as competitors scale their electric portfolios. The Kiger EV, for instance, will need to strike a balance between affordability, range, and features to compete with models like the Tata Nexon EV.
II - Manufacturing & Design Operations
The complete acquisition of the RNAIPL facility is the linchpin of Renault’s reset. Previously hampered by dual governance with Nissan, which slowed decisions due to conflicting French, Japanese, and Indian priorities, the plant now operates under unified Renault leadership. “This gives us operational freedom,” Minto says, highlighting faster model rollouts and streamlined processes. With a 480,000-unit annual capacity and current utilization at just 150,000, the facility is a “sleeping giant,” as per Mamillapalle.
The plant will continue producing Nissan models, ensuring economies of scale while optimizing costs. Localization, already at 90% for the Kwid, will be further deepened to reduce import reliance and enhance competitiveness. As a key export hub, the facility targets right- and left-hand-drive markets across Asia, Africa, and potentially Japan. “India is 20% more cost-effective than Turkey or Romania,” Mamillapalle says, noting that a free trade agreement (FTA) with the EU could unlock exports of left-hand-drive vehicles.
The transition involved aligning accounting standards and eliminating dual governance, a process closely monitored by Renault’s global headquarters. Previously siloed functions, such as R&D, supply chain, and production, now operate under a unified system, enabling efficient project execution. “This isn’t just a handover—it’s a structural overhaul,” says a source close to the company. Having full operational control enables Renault to act decisively, unhindered by alliance complexities, positioning the plant as a global manufacturing powerhouse.
“We’re ready, competitive, and capable,” Mamillapalle adds, with plans to ship to Southeast Asia, South Africa, and beyond. The RNTBCI in Chennai is central to Renault’s vision, driving product development, artificial intelligence integration, and digital innovation. A new design studio will craft India-specific models, targeting over 90% localization for the CMF-A, CMF-A+, and CMF-B platforms to keep costs competitive. “India’s cost advantage is unmatched,”
Mamillapalle says, noting that the country is 20% cheaper than alternative manufacturing hubs like Turkey or Romania. As part of Renault’s “New International Game Plan 2027,” India is positioned as a development and export hub, not just a sales market. Exports are projected to significantly grow post-2026, leveraging India’s cost edge and the RNAIPL plant’s capacity.
“If the FTA with the EU is concluded, we’ll activate our export roadmap,” Mamillapalle says, emphasizing the need for better logistics connectivity to realize this potential. The RNTBCI’s role extends beyond product design, incorporating AI-driven analytics for market insights and digital tools to enhance customer engagement.
III - Network Revamp
Renault’s 600 dealer touchpoints pale against Maruti Suzuki’s 3,800, limiting reach and eroding customer trust. “Our dealer network needs a total overhaul,” Mamillapalle admits.
The company is targeting a multi-fold increase in touchpoints by 2029, rolling out new ‘R Stores’ aligned with Renault’s global New Brand Identity (NBI). These enhancements will improve showrooms, after-sales services, and digital platforms, providing a modern, customer-centric experience. Following Sudhir Malhotra’s exit, Renault India’s sales and marketing operations are now led by Francisco Hidalgo Marques, former MD of Dacia in Spain and Portugal. With over 15 years of global experience across France, South Korea, Italy, Russia, and other key markets, Hidalgo brings a strong international and multicultural perspective.
Fluent in French, English, and Spanish, he has held roles spanning planning, sales, marketing, and operations—skills critical as Renault prepares for its next phase in India. Since taking charge, Hidalgo has implemented a new customer interface strategy and actively engaged with dealer partners nationwide. Early feedback from the network has been encouraging. Many dealers describe him as a good listener, open to feedback, and focused on building stronger on-ground execution and communication. Top dealers are reinvesting, signaling renewed confidence in Renault’s vision.
The NBI (New Brand Identity) revamp extends beyond physical showrooms, incorporating digital tools like online configurators and virtual showrooms to engage techsavvy buyers. After-sales services, a weak point in Renault’s past, are being upgraded with faster turnaround times and improved parts availability. This overhaul is critical to rebuilding customer loyalty in a market where service quality often determines brand preference.
As the company reimagines the India strategy, its brand-building efforts and go-to-market strategy also need a reboot, say experts. Chattopadhyay is critical of Renault’s branding approach, suggesting the company has lacked emotional engagement with Indian consumers. “Renault has allowed the product to carry the brand, instead of actively shaping its identity. In India, that’s not enough; emotional connection and visible storytelling are essential,” he notes.
As a result, even satisfied owners rarely become vocal advocates. “There’s a certain diffidence among Renault owners. They may like the car, but they don’t proudly talk about the brand. That’s a problem, especially when the company isn’t telling a compelling story.” He sees the Duster revival as a pivotal opportunity. “The Duster still enjoys brand equity.
If Renault positions it well and builds a larger narrative around it, this could be their reset button— not just in the SUV segment, but in how the brand shows up in India,” he says, urging stronger cultural integration and more precise articulation of Renault’s identity. Meanwhile, Renault is projecting double-digit sales growth in FY26, as it shifts away from Carlos Ghosn’s (former chairperson of Nissan) frugal engineering playbook to a value-driven focus on “upgraders”, in sync with the premium shift seen in India.
Minto also projects margin recovery and improved financial stability from FY26 onwards. The company’s €600 million India investment will fund CMF-B model development and crucial plant upgrades, which are in turn expected to lead to higher domestic and export volumes. Mamillapalle has set a target of attaining 5% share in the coming decade. Securing a 5% market share, roughly 500,000 units annually, is Renault’s ambitious target. “At 5%, you’re a player,” Mamillapalle asserts.
Ups and Downs
Even as the company charts a financial turnaround, its journey in India has been a rollercoaster—shaped by a constrained portfolio, limited scale, and volatile markets. In FY20, strong Kwid and Triber sales drove revenue growth, but high operational costs and reliance on low-margin models led to losses. Despite COVID-19 headwinds, Triber and Kiger launches helped reduce losses. Renault took cost-control steps—cutting overheads, office space, and marketing spends—to stabilize operations.
By FY22, it returned to profitability, supported by a stronger product mix and exports. FY23 marked a peak year, with domestic sales at 78,926 units and exports up 45% to 34,956 units, boosting revenue and profit. However, FY24 proved a brutal correction. Sales declined to 52,620 units, primarily due to semiconductor shortages, rising input costs, and falling industry volumes in the A-segment.
Cash reserves shrank, and operating cash flows turned negative. “Our limited portfolio and scale hurt us,” concedes Venkatram Mamillapalle. Renault’s reliance on entry-level products with razor-thin margins limited reinvestment potential. CFO Duncan Minto adds, “India’s low-margin segments and supply chain issues drove FY24’s challenges, but we’re rebuilding with discipline.”
The Challenges…
While Renault was struggling with its own ups and downs, the Indian market has undergone a metamorphosis that challenges Renault’s initial strategy and gameplan. New segments and categories have emerged as growth leaders, while fast-growing segments of the pre-pandemic era have turned into laggards. Maruti Suzuki’s mini-car sales have shrunk, but the market leader continues to dominate the compact segment while accelerating its hybrid and EV plans.
Meanwhile, Hyundai and Kia are pushing aggressively into premiumization and electrification. Tata Motors leads the charge in both SUVs and EVs, while Mahindra continues to dominate the SUV space. Meanwhile, Chinese brands like MG Motor and BYD are intensifying the battle with value-driven electric offerings. While the company has strengths like the high-capacity RNAIPL plant, 90% localization and export potential, its budget image and limited dealer network remain challenges.
Moreover, Renault’s history of delays and inconsistent messaging compound the execution risk. With Nissan’s position in India diminished, the burden of leading the Alliance’s growth increasingly rests on Renault’s shoulders. Success will require not just launching CMF-B models with compelling features like ADAS and connectivity but also expanding the dealer network and fully harnessing the innovation potential of RNTBCI.
Chattopadhyay notes that Renault’s lack of a distinctive brand narrative exacerbates its competitive struggles. “Renault arrived with flair, carving out new segments with the Duster and Kwid, but it hasn’t built on that leadership,” he says. Mamillapalle acknowledges the delays, citing internal indecision and underinvestment during the Ghosn era as factors: “Our launch process was sinusoidal.”
Chattopadhyay also points to partner trouble—Nissan’s uncertain future, weakened by stalled partnership talks and a dated product line—which adds pressure on Renault to lead the Alliance’s growth in India. Ramakrishnan echoes this, warning that Nissan’s vulnerabilities could limit the Alliance’s overall impact unless Renault’s strategy succeeds.
While lean inventories of 15–20 days reflect financial discipline, FY24’s falling revenues and negative cash flow expose vulnerabilities. External challenges—like delays in free trade agreements—can impact export timelines and require careful handling of geopolitical risks. India’s regulatory unpredictability also poses a hurdle, with Mamillapalle urging a unified compliance timeline, such as April 2030, to support innovation.
…and the Opportunity
Despite the challenges, opportunities abound if Renault executes well. India’s cost advantages, manufacturing scale, and a growing market set to reach 10 million units position it as both a strategic sales market and a global export hub. Having exited China and lacking a footprint in the US or Japan, Renault could transform India into a cornerstone of its future growth strategy.
The company is able to focus on India now that its European business has achieved a level of stability, reflected in €56.2 billion in revenue and a 7.6% operating margin in 2024. Renault’s current reset is its most ambitious and far-reaching yet. If executed with discipline, the plan could help cement Renault’s long-term legacy in India. As Chattopadhyay puts it: “If they can get the execution right, India could become the Alliance’s last real growth engine.”