Renault India achieves 1 mn production milestone, targets 2-mn mark by 2030

France’s Renault has reached a peak by producing one million vehicles in India and has set a target of 2 million by 2030, which will be driven by new launches and a planned electric vehicle foray, said a top executive on Wednesday.

Renault India is working on a slew of new models, including two ICE (internal combustion engine) products and an A segment (small car) electric vehicle (EV). The new cars will start rolling out in 2025. The company’s manufacturing facility in Oragadam near Chennai has a capacity of 480,000 units per annum.

Nissan Motor Co and Renault SA, which revamped their global alliance in February, plan to invest Rs 5,300 crore in India to launch six models, including two EVs. The investment is expected to give employment to 2,000 people. The two companies said that each would make three new models on joint platforms while retaining the individual styling of their brands.

“We would like to increase our profit by 2030 and achieve the 2-million mark by then,” Venkatram Mamillapalle, chief executive officer and managing director, Renault India Operations, told the media. Renault India sells three cars, Kwid, Kiger and Triber, in the country and exports to 14 countries and regions that include South Africa, SAARC and Asia Pacific. Most of its export business comes from South Africa.

“Achieving the production of 1 million vehicles in India is a significant milestone for Renault. It demonstrates our unwavering commitment to the Indian market and showcases the trust our customers have placed in us. We are deeply grateful to our customers, dealer partners, employees, and all stakeholders who have contributed to this remarkable journey,” said Mamillapalle. Renault, in 2022, produced around 84,000 vehicles and exported 28,000 and expects it to be around the same lines in 2023 as well. The company's manufacturing localisation level is around 92 per cent.

About the government asking manufacturers to be ready with flex fuel or E85 (85 per cent ethanol) vehicles, Mamillapalle said that his company is ready for any transition. The company believes it will easily adapt to E85 as it already has several flex fuel models in Brazil.

“E10 is already in the market and E20 is to be adapted and will be well occupied across the country by the end of 2024. It will reduce the imports of crude oil. We also have to progress towards E85. EV and E85 are two parallels, which will have to grow together. Indications are that by 2027, we will have E85 and refineries also have to be geared up,” said Mamillapalle.

A-segment cars like Kwid will continue in the market. “It has a market size 25,000-30,000 vehicles a month-- occupied for three cars only. The segment will not go away as it is part of a gradual promotion for a customer from two-wheeler to four-wheeler,” he added.

The Renault-Nissan plant, one of the alliance’s top centres for energy and resource reduction, had announced a plan for carbon neutrality. The target will be achieved by 2045, through a programme to transition to 100 per cent renewable energy.