French carmaker targets middle-class buyers with premium models as it seeks to rebuild market share from below 1%, according to Reuters interviews with CEO and company sources.
23 Jan 2026 | 301 Views | By Autocar Professional Bureau
France's Renault is relying on its popular Duster SUV nameplate to stage a comeback in India, according to Reuters, as the automaker shifts strategy toward wealthier customers and premium vehicles under new CEO Francois Provost.
The company plans to unveil a redesigned Duster on January 26, India's Republic Day, ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
France's Renault is relying on its popular Duster SUV nameplate to stage a comeback in India, according to Reuters, as the automaker shifts strategy toward wealthier customers and premium vehicles under new CEO Francois Provost.
The company plans to unveil a redesigned Duster on January 26, India's Republic Day, Reuters has learned through interviews with Provost and five company sources and suppliers. The launch marks the beginning of an ambitious plan to grow Renault's Indian market share from less than 1% today to a target of 5%, according to the report.
"Previously, our strategy was to offer a car to all Indians. That is not my strategy," Provost told Reuters. "I am targeting the middle class, which is growing in India and wants competitively priced but attractive cars."
Reuters reports that Duster sales are expected to begin in February with a hybrid powertrain option for the first time in India. Three suppliers told Reuters that Renault expects annual Duster production to reach 130,000 to 140,000 vehicles, potentially more than tripling the company's 2025 India sales.
According to Autocar India, the new Duster will be offered with both petrol and hybrid powertrains. The petrol variant will feature a 1.2-litre three-cylinder turbo-petrol engine producing 130hp, paired with either a six-speed manual or seven-speed dual-clutch automatic transmission. The hybrid version, which Renault plans to launch within 12 months of the petrol model, will utilize a 1.8-litre petrol engine combined with two electric motors, delivering a combined output of 143hp.
The Duster originally debuted in India in 2012 and became a major success, helping Renault capture 4% of the passenger vehicle market by 2016. However, the company pulled the model almost five years ago due to the cost of meeting new emissions standards, Reuters reported.
Following the Duster, Renault will introduce a larger SUV similar to its Dacia Bigster and an electric vehicle, sources told Reuters. Autocar India reports that the Bigster could arrive in India within the next 12 to 18 months, offering a seven-seat configuration to compete in the larger SUV segment.
The automaker now has full ownership of a factory in southern India with annual capacity of 500,000 units.
The India revival is part of Renault's broader strategy to reduce dependence on Europe, which accounted for nearly 70% of sales last year, according to Reuters. The French carmaker faces increasing competition from Chinese entrants like BYD in its core European market.
Sales in India, the world's third-largest car market, are projected to reach 6 million vehicles by 2030, up 36% from 2025, S&P Mobility data showed, with SUVs and premium vehicles driving growth.
"Renault needs to solidify its market share in its high-growth markets," Alexis Albert, equity fund manager at DNCA Finance, a Renault investor, told Reuters.
Renault said it will invest 3 billion euros by 2027 launching models in India, Latin America, South Korea, Turkey and North Africa, though it declined to specify the India allocation. By comparison, Suzuki plans to invest $8 billion in India and Hyundai $6 billion, Reuters noted.