French automaker Renault, which formed a new joint venture with Nissan in February, announced a new Rs 5,300 crore investment to solidify its presence in the Indian market.
Of the planned six models under the JV, the automaker now expects to launch its first-ever electric vehicle offering by 2025, ET Auto reports citing Renault India’s Operations Chief Executive and Managing Director Venkatram Mamillapalle.
Renault India to penetrate above the four-meter segment
Speaking with the media at a roundtable in Chennai, Mr. Mamillapalle stated Wednesday that Renault India has plans to produce three new cars in the country, one of which is an all-electric vehicle over the next two years.
“We are getting into EV (electric vehicle) space. We are also entering into bigger vehicles (above the four-metre segment). We already have passenger cars like KWID, KRIGER, and TRIBER in India.”
Renault India Operations Country CEO and Managing Director Venkatram Mamillapalle
The move is apparently part of the automaker’s wider strategy to reach a 2 million customer pool in the Indian market by 2030.
The executive also expects the new models to increase Renault’s profitability.
“Growth pattern for Renault has been consistently good. I think with the new products we will be turning around (in terms of profits).”
Renault India Operations Country CEO and Managing Director Venkatram Mamillapalle
It is worth noting that the JV will provide both Renault and Nissan with three models each. According to Indian reports, Renault will have two non-electric models, while the other one will be a battery-powered car.
Target
The Economic Times indicated that Renault India reached approximately 92% localization with its current car offerings.
Now, the automaker is aiming for the same localization rate for its new-gen cars, Mr. Mamillapalle stated.
“The same (92 percent localization) is the target for new vehicles as well.”
Renault India Operations Country CEO and Managing Director Venkatram Mamillapalle
Currently, there are more than 450 sales locations and 530 service touchpoints nationwide for Renault India, including 250 workshop-on-wheels.
See Also:
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- Renault to officially launch the Megane E-Tech in Australia in 2023
- “This is destroying value for the customer,” Renault CEO says of Tesla’s pricing strategy
Excitingly, the new EV would compete in the over-4-meter segment in the Indian market, as Mr. Mamillapalle noted that Renault already has entries in the sub-4-meter segment.
As mentioned, the new EV would only be one of the six models the Renault-Nissan JV planned. It would be interesting to see how the partnership would fare in the Indian market.
