October 5, 2018
Renault’s is looking to supply primarily mass-market vehicles from India to the emerging markets of Africa, Middle East and Latin America
Besides boosting export, the company hopes that the strategy will help double its share of India’s growing car market to 5 per cent by 2021
Renault is preparing to launch its India-manufactured electric version of Kwid in China in the next year. The small EV has a range of 250 km
Foreign carmakers such as Daimler AG, Volvo Cars, Ford Motor, Hyundai Motor, Honda Motor, Nissan Motor have invested in making in India
Groupe Renault, a French automobile manufacturer, is planning to make India a global export centre for emerging markets, according to a report by Livemint on October 5, citing a company executive. Renault’s decision reportedly follows the recent success of its small car Kwid in Latin America and South Africa. The carmaker is now looking to supply such vehicles from India to the emerging markets of Africa, Middle East and Latin America. Additionally, the company plans to source more than 95 per cent of components for its India-manufactured vehicles from domestic suppliers, particularly for the mass-market segment. The strategy will help Renault effectively compete in the fast-growing and low-priced markets.
Besides boosting export, the company hopes that the plan will help double its market share in India to 5 per cent by 2021. To tap the market opportunities in India, Renault aims to launch two new mass-market models over the coming two financial years. Renault had started its Indian operation in 2005 in a joint partnership with local vehicle maker, Mahindra and Mahindra. Since then Renault has set up a plant in Chennai with annual production capacity of 480,000 units, along with two design centres. Currently, while small cars such as Kwid has a localisation feature of over 95 per cent, the same is lower for bigger models such as Duster. The carmaker is already exporting its small car Kwid from India.
Meanwhile, Renault is preparing to launch its India-manufactured electric version of Kwid in China in the next year. The small EV, which has a range of 250 km, has been designed at the Chennai plant. The car will be launched in India following the introduction of the national electric vehicle policy. Apart from EV design, Renault plans to use India as a sourcing point for EV components such as electric motors and transmission parts for the long term. Renault has also been sourcing parts for its fuel vehicles from India. Renault isn’t alone, foreign carmakers such as Daimler AG, Volvo Cars, Ford Motor, Hyundai Motor, Honda Motor, Nissan Motor have invested in making India a manufacturing destination.