Venkatram Mamillapalle, CEO and MD country, Renault India
Could you share an update on Renault’s plans to take the Chennai factory of Alliance Nissan’s partner and what it means to your Indian strategy?
First, this is a project of which we have tasks from a technical point of view. From now on, Renault’s intention to take full property of the Oragadam plant has been announced and confirmed. Currently, the discussions are in the Alliance, and we hope that the transition process will end within the next two or three months. Once final, the necessary alignments and actions will continue to establish the course for the next phase of operations. At this point, it is diffusion to sacrifice precise short -term details. However, one thing is clear: both globally and locally, the Indian market represents a great opportunity for growth for us and Renault is here in India in the long term, with firm plans to grow and lead.
What strategic advantage does Renault get when acquiring total control of the Chennai plant?
The plant currently has a capacity of around 472000 to 480,000 units per year. Toofy takes advantage of this, our approach is to climb national volumes, backed by exports. We have committed ₹ 5,400 million rupees for the future development of products, including segment B, compact SUV (CSUV) and electric vehicles (EV). About 90 percent of the bases are already complete. These next products are expected to significantly increase our volumes. It is important to note that the plant continues to manufacture Renault and Nissan vehicles. This collaboration allows us to potentially duplicate our current departure. In early 2027, our goal is to reach a production volume of 2800 to 300,000 units, and any total use of the plant by 2030. The objective is the use of 100 percent, with space for future expansion.
While Renault has not faced the same challenges in India as its partner of the Alliance, growth has still measured relatively; Some could say that the brand was not so aggressive in its approach. What gives you trust now to pursue ambitious volume goals?
That is a fair observation. When Luca De Meo is shown as CEO Global in 2021, Renault was in a difficult place, not only in Europe, but worldwide. The Ukraine conflict forced us to close three main plants in Russia. We already had a lower performance in China and possible we left that market. Brazil was also delayed, and we didn’t have a presence in the United States. That left India, which, at that time, was profitable.
Most of our Indian portfolio had a price of less than ₹ 10 Lakh, which resulted in narrow margins. Executing a plant of 480,000 units with such a limited scale and low reinvestment was a challenge.
The change occurred with the launch of the Renowing strategy in 2021. He helped Renault recover profitability in Europe and laid the foundations for international growth. Since then, Brazil and Korea have shown strong performance. Now, it is the turn of India.
Our Global CEO has visited India twice in the last year, a strong commitment signal. He has established clear expectations, and now depends on the Indian team to deliver.
Yes, our previous approach here was inconsistent, with long gaps between the releases. External events such as Covid and the Ukraine War affected the impulse. But now, the scenario has changed. India is a strategic growth market for us. Taking 100 percent of the property of the Chennai plant is a strong and symbolic step towards that future.
What are the growth ambitions of your sales and market share under the new strategy?
As of March 2024, the total volume of the industry (TIV) in India was 4.3 million passenger vehicles. The forecasts indicate that this could grow to 6.2–6.4 million by 2030. Personally, I think the market could reach about 10 million by 2032, driven by a quick evolution ecosystem and a greater moment of development. This anticipated growth reinforces our decision to fully acquire the plant. It is a bold and vision of the future that positions us to better address the growing demand. Our goal is to ensure at least a 5 percent share of a 10 million unit market, which justifies the scale of our investment.
How are the next launch of Renault products under the new strategy?
One of the cornerstones of our strategy is Renault. Restart: a new approach to involve customers and redefine how they perceive the brand. As part of this, Renault will launch five new models in the next two years, and the first is expected to arrive in just a few months.
Our next B+ and C segments SUVs will be fundamental for the next phase of our growth. These are completely new products, not only versions of next gene or existing models. At the same time, our current alignment will also evolve towards its next generation avatars.
And we are not stopping there. The discussions for the next wave of products are already underway, and we will share more once these plans are finished. The critic is that this time we are completely committed to execution.
We are no longer limiting ourselves to the Sub-₹ 10 Lakh segment. Our product strategy now covers the CMFA platform and segments A, B and C, each addressing different price points and supporting a more diversified income model.
SUVs are still central to our approach. Our goal is to compete throughout the spectrum from the input level to the premium. SUVs of segment B+ and C are already in development and are on the way to launch before 2027.
In addition, we have introduced a new brand identity that is being implemented throughout our distributors network under a unified retail concept that we call Rstore.
Posted on April 23, 2025