CHENNAI: French automotive major Renault announced on Wednesday that it has lined up an investment of approximately €3 billion ($3.2 billion) for expansion, as part of its International Game Plan for 2027. This initiative encompasses regions beyond Europe, including India. According to the road map, by 2027, one in every three Renault cars sold outside Europe will be either hybrid or electric.
Currently, more than 40 per cent of the company’s sales originate from outside Europe, and it maintains manufacturing facilities in Latin America (LatAm), North Africa, Turkey, India, and South Korea.
Fabrice Cambolive, chief executive officer (CEO) of Renault Brand, said, “We have redesigned our footprint and bolstered our competitiveness. Approximately €3 billion will be expended as part of the International Game Plan for 2027, and eight Renault brand models will be produced and introduced outside Europe by 2027. This includes five C- and D-segment cars and two light commercial vehicles.”
Cambolive, who assumed the role of CEO in February 2023, previously held the position of Renault brand chief operating officer, starting in May 2022.
He further added, “We will also accelerate electrification, and one in three Renault cars sold outside Europe will be hybrid or electric.”
The company also unveiled its new compact sport utility vehicle (SUV), named Kardian, targeting emerging markets (EMs). Kardian is expected to be Renault’s smallest SUV in many EMs, as the Kiger is not available in several markets outside India.
Earlier this year, the company announced its plans to build a C-SUV in India, and Kardian is anticipated to be part of that broader long-term road map.
“The 2027 plan is based on two platforms, one is the Renault Group modular platform for LatAm, Turkey, India, and North Africa, and another is the modular architectural platform for South Korea. Kardian is the first of the eight models to be launched on a modular platform,” explained Bruno Vanel, vice-president of product performance, Renault Brand.
This expansion comes at a time when the company is placing significant emphasis on the Indian market. Having reached the milestone of producing 1 million vehicles in India earlier this year, Renault has set a target of 2 million by 2030, driven by new launches and a planned electric vehicle (EV) venture.
Renault India is currently developing a range of new models, including two internal combustion engine products and an A-segment EV. These new cars are scheduled to commence production in 2025.
Renault India currently offers three models, namely the Kwid, Kiger, and the Triber, in the country, and exports to 14 countries and regions, including South Africa, South Asian Association for Regional Cooperation, and Asia Pacific.
The company’s manufacturing facility in Oragadam near Chennai has an annual production capacity of 480,000 units.
Nissan Motor Corporation and Renault SA, who restructured their global alliance in February, have outlined plans to invest Rs 5,300 crore in India to launch six models, including two EVs. This investment is expected to generate employment for 2,000 people. Both companies have committed to producing three new models each on joint platforms while retaining the individual styling of their respective brands.
The majority of Renault’s export business is attributed to South Africa. In 2022, Renault produced approximately 84,000 vehicles and exported 28,000, and they anticipate similar numbers in 2023. The company’s level of local manufacturing is approximately 92 per cent.
Source: Business Standard